Editor's view: Can open-ended property funds survive in their current form?

Property funds are facing their biggest test since the financial crisis as months of outflows in the run-up to the EU referendum have gathered pace following the Brexit vote.

After taking measures to help protect existing investors over the past weeks, four giants of the open-ended property sector have now suspended trading on the vehicles. Standard Life Investments was the first to make the move, swiftly followed by Aviva Investors, M&G, Henderson and Columbia Threadneedle. Further suspensions are now likely as a vicious circle is created, with investors rushing for any exits possible, despite recent price falls. Providers will have been hoping to avoid the drastic step of announcing suspensions, which have made headline news across the national press and...