Phoenix increases stake in Barratt and Bellway

Phoenix Asset Management partners has upped its stake in Barratt Developments PLC and Bellway PLC after stocks for Uk house builders fell signifcantly after the decision of the United Kingdom to leave the European Union last month.

Shares of Barratt and Bellway have plunged 34% and 30% respectively since June 22, the day before the historic referendum.

Phoenix has a stake in both companies due to the Phoenix UK Fund, which it increased from 11.2% to 12% with regard to Barratt, and a rise in Bellway from 7.1% to 10.5%.

The property market received a blow last week as seven companies suspended their property funds from trading due to the economic aftershocks of Brexit.

Britain voted to leave the powerful bloc in June after a bitter and divisive campaign which led to a severe drop in sterling's valuation, triggering instability in the markets.

Standard Life Investments was the first to halt trading in its GBP2.9 billion commercial real-estate fund, citing "exceptional market circumstances." The funds buy commercial real-estate properties and invest in real-estate investment trust shares.

Phoenix Asset Management has said that it doesn't expect profits to drop in the housing market, despite the uncertainty.

"The price was a good opportunity," said Tristan Chapple, head of research at Phoenix Asset Management Partners. "Nothing has changed in [house-building] fundamentals," Mr. Chapple said

Phoenix is among the top 10 shareholders in both Barratt and Bellway, Mr. Chapple said, pointing out that the asset manager has been following the U.K. house-building sector for 18 years. On its website, the asset manager describes itself as a "long-term value investor," which is patient and waits "for opportunities to buy shares at attractive prices."