M&G Investments has become the third company to suspend trading in a real estate fund, following Aviva Investors and Standard Life Investments. M&G said in a statement Tuesday afternoon that investor redemptions in the M&G Portfolio and its feeder fund have risen markedly because of the high levels of uncertainty in the UK commercial property market since the outcome of the European Union referendum. It is rare for fund managers to impose such so-called gates on funds, although it became more of an issue after the financial crisis.
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"The pound was trimming overnight losses in London after slumping below $1.28 during Asian trading, a level not seen since 1985.
At its weakest level of the day, sterling was down 1.7 per cent at $1.2796
Top tier government bond yields were at all-time lows, with the 10-year UK gilt below 0.75 per cent, while selling pressure on European equities was once more being led by weakening bank shares. The Euro Stoxx banks index fell to its lowest level since July 2012 as shares in Deutche Bank slid 6 per cent.
Gold rose to $1,375 an ounce, marking a new post-Brexit peak and the precious metals, its highest level since March 2014.
Attention remained firmly on the pound, after its latest slide was driven by a number of large UK asset managers halting retail investors from withdrawing money out of property funds."
If I had not left the UK >15 years ago and had been able to vote, I would have voted Leave. Economic union YES, political union NO.
However, I do not think the UK is leaving the EU anytime soon.
In few words, a likely scenario :
Theresa May becomes PM, despite being in the Remain camp, albeit very low-profile.
She duly appoints a commission to study how the UK should prepare prior for triggering Article 50. There is of course no intention for this commission to reach a conclusion. Juncker's insistence in Brussels that the UK must immediately trigger Art 50 is completely ignored (as it should be).
Meanwhile, the UK leaves the ECHR (European Convention on Human Rights), participation in which - contrary to most people's belief - is not an obligation for EU members. This largely addresses one of the two pillars of the Leave campaign, "immigration". UK re-enacts its own human rights legislation.
While the "Art 50 commission" drags laboriously on, Madame May starts discussions with EU leaders, suggesting that with their support, she just might be able to keep the UK within the EU (subject to the major changes refused to Cameron last February). Led by Merkel, who desperately wants not to be left alone in bed with the French garlic eaters, favourable terms are agreed. This addresses the second pillar of the Leave campaign "unfair terms/too many rules from Brussels".
A vote to stay is held in the House of Commons and carried by a landslide majority.
The nation breathes a sigh of relief. The pound surges and beer on the Costa del Sol costs much less than during Summer 2016. Happy Ending.... kinda, sorta... everybody forgets about Brexit, even Nicola Sturgeon.
Last edited by jtrade; July 6th, 2016 at 12:13 PM.
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Five of Top 10 UK Property Funds Now Closed to Trading
Henderson Global Investors and Columbia Threadneedle have become the latest fund managers to stop investors in UK property funds from pulling their money out after Britain voted to leave the European Union. That brings the total to Five of Top 10 UK Property Funds Now Closed to Trading. The other five largest funds investing in UK commercial property are managed by Kames Capital, Aberdeen Asset Management, Legal & General Investment Management, F&C and Royal London Asset Management.
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