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Holly Black weighs up the pros and cons of open- and closed-ended property funds – but finds one type of vehicle has all the chips stacked in its favour
P ANIC IN THE
MARKETS AFTER THE EU REFERENDUM brought the risks of property investing into sharp focus . While investment companies saw their share prices fall and discounts widen , open-ended funds locked their doors and suspended trading . As a result , many investors are questioning whether open-ended funds represent the best way to invest in property .
“ Open-ended property funds should be a thing of the past ,” says
Caroline Shaw , head of fund & asset management at Courtiers . “ They are not fit for purpose ; investors have the illusion of liquidity until it evaporates when they need it most .”
“ A closed-ended structure is far more appropriate : it means the manager can invest all of his assets
16 trustnetdirect . com