Brush up on your 2008 playbook
Thursday, July 7th 2016, 2:51PM
ANZ economists provided a saluatory reminder to investors in property funds. They said, in a recent email, "investors are starting to learn the hard way that a convenient online redemption request form does not a liquid asset make."
"Six UK property funds have now frozen redemptions, as Brexit fears saw everyone rush for the door. Said door was promptly closed and locked. The global rush for yield in recent years, prompted by record-low interest rates, has seen investors get into all kinds of assets for which, one fears, many do not understand the liquidity risks, quite apart from questions of true economic valuations.
"If investors en masse start to focus on the return of their money rather than the return on it, then we don’t have to look very far back in history to see how it plays out."
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