‘Panic’ Brexit Withdrawals Freeze $23 Billion Property Funds
- Henderson, Columbia Threadneedle and Canada Life suspend funds
- Aberdeen marks down value of U.K. property fund by 17%
U.K. Property Funds Frozen to Halt Withdrawals
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U.K. property funds with about 18 billion pounds ($23.4 billion) of assets froze withdrawals as investors sought to dump real estate holdings in the aftermath of Britain’s vote to leave the European Union.
“It’s reminiscent of Bear Stearns’ subprime funds before the Lehman debacle,” Bill Gross, a fund manager at Janus Capital Group Inc., said on Bloomberg TV. “The system doesn’t allow liquidity to flow into the proper places. If these property funds are just one indication, perhaps there will be others to follow. I think it’s something to worry about.”