{"id":21406,"date":"2016-07-10T17:42:50","date_gmt":"2016-07-10T22:42:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21406"},"modified":"2016-07-10T17:42:50","modified_gmt":"2016-07-10T22:42:50","slug":"first-post-brexit-bailout-looms-as-bank-of-england-mulls-uk-property-fund-measures","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21406","title":{"rendered":"First Post-Brexit Bailout Looms As Bank Of England Mulls UK Property Fund ‘Measures’"},"content":{"rendered":"

First Post-Brexit Bailout Looms As Bank Of England Mulls UK Property Fund ‘Measures’<\/a><\/h3>\n
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Who could have seen that coming? While many have\u00a0questioned the “suitability of daily-traded, open-ended property funds that are giving investors access to an illiquid asset,”<\/strong><\/em>\u00a0all the time the price is rising, no one wants to rock the boat. However, now that Brexit has rocked the boat, spoiling the party for UK property investors and asset managers alike, it’s\u00a0time for Carney to ride to the tax-payer-funded bailout rescue<\/strong>\u00a0to ensure Bear Stearns 2.0 does not become Lehman 2.0…<\/div>\n
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Following the gating – or forced haircuts – of\u00a0eight<\/strong>\u00a0large UK property investment funds this week<\/a>, fears have grown rapildy of the\u00a0risk of contagion,<\/strong>\u00a0which, as The FT reports,<\/em><\/a>\u00a0is much greater than first feared, with detailed analysis showing that a wide pool of funds have been caught up in the gates imposed on investors withdrawing cash<\/strong>.<\/p>\n

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The worry is that this will trigger systemic problems for the marketplace<\/strong>, which is already reeling from the UK\u2019s decision last month to end its membership of the EU.<\/div>\n

A prominent UK fund manager, speaking on condition of anonymity, said:\u00a0\u201cWhen you start getting daily trading funds-of-funds investing in daily trading funds that are invested in illiquid assets, that seems to be layering up potential liquidity risks. \u201c[Investors need to] consider the impact on funds that are caught with material investments in the gated property funds.\u201d<\/em><\/strong><\/p>\n

Three multi-asset funds run by Henderson also have around 3.5 per cent of their assets in the company\u2019s own suspended property fund, while Aviva Investors\u2019 multi-asset product has a 4 per cent stake in its gated property fund.<\/p>\n

Many other multi-asset funds \u2014 one of the fastest-selling investment strategies of the past 12 months \u2014 run by rival investment managers have also been caught out by the property fund suspensions.<\/strong><\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

First Post-Brexit Bailout Looms As Bank Of England Mulls UK Property Fund ‘Measures’ Who could have seen that coming? While many have\u00a0questioned the “suitability of daily-traded, open-ended property funds that are giving investors access to an illiquid asset,”\u00a0all the time the price is rising, no one wants to rock the boat. However, now that Brexit […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[56,10661,5582,12424,14176,6654,995,7651,14177,4318],"class_list":["post-21406","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-england","tag-bear-stearns","tag-brexit","tag-henderson","tag-layering","tag-lehman","tag-mark-carney","tag-securities-and-exchange-commission","tag-uk-property-funds","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21406"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21406\/revisions"}],"predecessor-version":[{"id":21407,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21406\/revisions\/21407"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}