Brexit Panic? Third U.K. Property Fund is Suspended
U.K. property funds could come under further stress after a surge in redemptions following the country’s vote to leave the European Union caused three asset managers freeze their holdings, Morgan Stanley said in a note to clients on Tuesday. Fund suspensions “are designed as circuit-breakers, but the sentiment generated can still drive a negative feedback loop, in our view, similar to that seen during the last financial crisis,” analysts including Anil Sharma wrote. M&G Investments and Aviva Investors followed Standard Life Investments in halting redemptions from commercial-property funds that manage 9.1 billion pounds ($12 billion) as the currency fell to a 31-year low and investors pulled out their money. Bloomberg's Colin McClelland reports and Indosuez Wealth Management Chief Economist Marie Owens Thomsen discusses with Bloomberg's Francine Lacqua on "The Pulse."