Property Funds Conference October

Property Funds Conference

Tuesday 22nd October| 10:00-12:00 | 2 CPD Hours

 
In times of market stress (such as the global COVID lock-down or the Brexit referendum result) investors understandably consider changing allocations. This may mean moving their money out of some funds.

 

Such was the case for many UK property funds.

 

Open-ended property funds (or unit trusts or "PAIFs"), investing solely in physical property assets were closed to redemptions when the pandemic first hit the UK in March 2020. Their reasoning cited "Material Uncertainty Clauses" (MUCs) or "material valuation uncertainty" from their valuers.

 

Basically offices, hotels and other commercial premises became empty overnight. No one was buying or selling commercial property under these conditions.  
 
In September 2020 all such MUCs were removed by valuers and so these PAIFs could reopen. Few did. Those that did, faced redemption requests. By 2023 many such funds were still getting redemptions, particularly from pension investors. A few of them have even closed permanently and are  now in the process of winding up.

 

The FCA in trying to address this problem devised a new structure the Long Term Asset Fund (LTAF). These can hold illiquid assets but investors trying to exit may be tied into 6 or 12-month redemption periods. 

 

However all this should not put off investors from investing in UK property.

 

Open-ended funds with daily dealing are not the right structure for investing only in illiquid investments such as property. Instead closed-ended property funds are much better suited, these are often called property investment companies ("PICs") or investment trusts. These are listed on the LSE and shares are traded just like any other listed company via stockbrokers.

 

Portfolio Managers of PICs do not need to sell properties to meet redemptions, nor do they need to keep a cash buffer in case there are future redemptions. These funds can stay fully invested.


 
This conference will give an update on the UK Commercial Property sector and introduce you to some of the stock-market listed property investment companies that specialise in this sector, and also funds that invest in them. 

 

This conference is suitable for IFAs, Family Offices, Stockbrokers and Wealth Managers and is free-to-attend for employees of regulated investment firms.

 

Qualifies for 2 hours CPD

Event and Venue Information

CPD Authorised Yes
Event Date 22-10-2024
Event End Date 22-10-2024
Price £0
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