From Fund Strategy:

The asset manager says it halted trading on the Standard Life Investments UK Real Estate Fund and its associated feeder funds at noon today. The suspension will last for at least 28 days and will remain in place until it is “practicable” to lift it, with the decision being reviewed at least every 28 days.

Surge in Redemptions

SLI said the move has been taken in response to a rise in redemption requests “as a result of uncertainty for the UK commercial real estate market following the EU referendum result”.

“The suspension was requested to protect the interests of all investors in the fund and to avoid compromising investment returns from the range, mix and quality of assets within the portfolio,” a spokesperson from SLI says.

The SLI fund has lower risk positioning, which should benefit investors, the spokesperson says. The fund had £2.9bn in assets at the end of May, with 13 per cent in cash. However, just as we saw in 2007, the liquidity mismatch between the fund and the assets it holds is leading to concerns.