Deep Dive: A 'bleak' future but not a 'forgone conclusion' for open-ended property funds

‘Asset/liability mismatch’

James Baxter-Derrington
clock • 4 min read

Recent suspensions have brought open-ended property funds back into the spotlight, leaving investors to debate the future of a structure some argue houses an “inherent mismatch”.

Last month, the M&G Property Portfolio and WS Canlife UK Property ACS were suspended ahead of closure, with both managers noting sustained outflows that were unlikely to be reversed. M&G global head of product and distribution Neal Brooks added the firm "does not foresee a future" for the open-ended direct property structure, a view reinforced by PortfolioMetrix UK head of investments Nic Spicer. Open-ended property funds assert confidence following M&G closure as outflows mount "Today's open-ended property funds do not have a future," Spicer declared. "There is an inherent asset/l...

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