The closure of many open-ended property funds for only the second time in their history (we think) is a classic case of irrational investor decision-making, writes Guy Stephens, managing director of Rowan Dartington Signature.
We track liquidity closely as part of our risk grading process. This means we tend to favour more conventional, mainstream investments over the more esoteric and specialist ones as the latter are often relatively illiquid and especially so at times of market panic. If a supposedly equivalent risk investment has the potential to be illiquid when there is a stampede for the exit, then does it really have equivalent risk? We would argue absolutely not. M&G: Credit facility 'one option' to fund redemptions on suspended property portfolio We have two bricks and mortar open-ended propert...
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