Brexit: Two more firms put funds into lockdown
Two more investment firms have put their commercial property funds into lockdown after seeing investors rush to pull out their money following the Brexit vote.
Henderson Global Investors and Canada Life became the latest groups to make the move, joining M&G Investments, Aviva and Standard Life Investments, which have all suspended trading in their UK commercial property funds since Monday.
Together the five funds are worth more than £13bn.
Their suspension has fuelled investor jitters over the fallout from Brexit, sending the FTSE 100 Index tumbling by around 1.6%, and sparking hefty share falls among housebuilders. Markets were also sharply lower across Europe and on Wall Street as the post-Brexit vote relief rally ground to a halt.
Henderson said it halted dealing in its £3.9bn Henderson UK Property PAIF & Henderson UK Property PAIF Feeder Fund due to "exceptional" pressures on liquidity - meaning it did not have cash to repay investors, as funds are tied up in commercial properties.
Investors are now restricted from buying or selling shares in the funds. It said: "The portfolio remains well positioned in core properties with high quality tenants, with the managers continuing to focus on delivering an attractive income stream."
Canada Life said it suspended dealing in its £222m property fund to "protect the interests of all investors in property funds".