In December two billion pound plus property funds reduced the value of their funds by close to 6% by changing their pricing policies.
There is no concern about the quality of their investments but as investors are taking out their money, the funds are facing costs associated with the sale of properties to meet the cash flow demands of investors redeeming shares.
Whilst property funds in general have shown that some property exposure is a relevant part of one’s portfolio of investments, such changes in pricing have reignited the debate with regards to whether those funds manage their cash flow within appropriate boundaries for retail investors.
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