Groups blast PAIF-unfriendly platforms

Asset managers have accused platforms of harming investor interests because they are unable to support tax efficient property funds, which were given a welcome boost in last week's Finance Bill.

Property Authorised Investment Funds (PAIFs) are open-ended investment companies holding direct property, REITs, or a combination of both. Tax exempt investors investing through ISAs and SIPPs, benefit from receiving tax free income from up to three different sources. Aviva, LGIM, SLI, and Threadneedle are among the groups ready to convert existing property funds to PAIFs next year. But they say fund platforms so far cannot distribute this type of product because they are unable to manage PAIFs' separate income streams. The platforms have been working with bodies such as the Associati...