Standard Life suspends trading of property fund after Brexit
Property fund withdrawal is due to "exceptional market circumstances" company says
- UK vote to leave EU led to volatile markets and international companies looking elsewhere
Updated : 10:30
Standard Life Investments has suspended trading in its UK property fund after uncertainty surrounding markets in Britain after the country voted to leave the European Union last month.
The suspension will last for at least 28 days and will remain in place until it is “practicable” to lift it, with the decision being reviewed at least every 28 days, according to the asset manager at Standard Life Investments UK.
The suspension will last for at least 28 days
“The suspension was requested to protect the interests of all investors in the fund and to avoid compromising investment returns from the range, mix and quality of assets within the portfolio,” a spokesperson from SLI says.
It is not common for managers of funds to impose such suspensions, but became more frequent after the financial crisis in 2008.
“Unlike investing in equities, the selling process for real estate can be lengthy as the fund manager needs to offer assets for sale, find prospective buyers, secure the best price and complete the legal transaction,” the spokesperson says.
Several businesses have signalled their intentions to move jobs and offices elsewhere in Europe
Several businesses have signalled their intentions to move jobs and offices elsewhere in Europe after Britons voted for a Brexit from the European Union, triggering widescale political and market uncertainty.
Several businesses have signalled their intentions to move jobs and offices elsewhere in Europe
“The outcome of the UK referendum has resulted in increased uncertainty in valuations for the UK commercial property market and we believe that valuations have been negatively impacted," an SLI spokesman said last week.