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CEO tapes: why property funds faced problems after Brexit vote

After last year's EU referendum ended with a victory for the Leave campaign there was a lot of uncertainty about UK-based investments. 

This was most obviously felt in the property sector, as investors in property funds rushed to redeem their investments in an uncertain time. Standard Life Investments was the first to suspend trading on its £2.7 billion UK Real Estate fund, and others soon followed suit. 

Almost a year on the majority of these funds have reopened and are trading as normal. However, the scenario did raise several issues with funds that hold illiquid assets, and has prompted the Financial Conduct Authority to look closer at such funds. 

The sixth part of our video series with leading asset management chief executives focuses on this debate. It is is mainly about property unit trusts. M&G suspended its trust after the EU referendum, while Aberdeen reduced the price at which investors could take redemptions. 

M&G chief executive Anne Richards and Aberdeen chief executive Martin Gilbert explain what actually happened in the wake of the vote, what clients said to them and why they took the decisions they did. 

The four chief executives also debate what is the best course to take, and what should be the right course of action when faced with a 'disaster scenario' in the future. 

 

You can see other videos in the series below

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