The fund invests in large retail projects across the country, and the struggles in the retail sector over the past few years have been well-documented.
The suspension of property funds should not necessarily be a cause for alarm on their own.
They have precedent, as we saw in the wave of funds suspending redemptions in the wake of the 2016 EU referendum result.
Nonetheless, the issue of open-ended funds and investor redemptions within illiquid assets will need to be addressed sooner rather than later if we are to run into periods of economic uncertainty.
It was often said that UK Property was always a safe bet, particularly in comparison to more volatile sectors.
While all the cranes in the UK cities’ skylines may hint towards a burgeoning industry, a closer look at the figures suggests a mixed picture.
When the AFI is rebalanced again towards the end of the year, we will find out whether our panellists’ caution has been vindicated.
Charles Younes is research manager at FE Investments
