BlueBay's head of investment risk Blua: Daily dealing property funds an 'aberration'

Structure 'an accident waiting to happen'

James Baxter-Derrington
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Jean-Phillipe Blua of BlueBay Asset Management
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Jean-Phillipe Blua of BlueBay Asset Management

Open-ended property funds offering investors daily liquidity are an "aberration", according to Jean-Philippe Blua, head of investment risk and performance at BlueBay Asset Management, who described the fund structure as "an accident waiting to happen".

"It does not make any sense whatsoever. I am still sort of gobsmacked that this could have existed up until now," Blua said. "Anyone who is trying to buy or sell a property knows that is absolutely impossible to be consistent with getting your money back within a day." Open-ended property funds across the industry have been suspended since March due to liquidity issues arising from the Royal Institute of Chartered Surveyors (RICS) imposing a material valuation uncertainty clause across the market in the wake of the coronavirus pandemic. On 9 September, RICS removed that clause acro...

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