INDUSTRY NEWS

Investors to become trapped in London commercial property funds

Investors could end becoming trapped in badly-performing UK commercial property funds, as companies are forced to freeze investor withdrawals, experts have stated.

People who have made big profits from their investments should try and take out their funds as soon as possible – as managers could end up locking investment into their schemes to try and avoid a crash – but long-term investors have little to worry about, says Mark Dampier of financial adviser Hargreaves Lansdown.

"We could see a lot of money coming out, and fund managers might have to react by imposing exit penalties or waiting periods to get your money back," Mr Dampier told The Times newspaper.

"It could be like the penalties on with-profits funds, which insurers said would only be in place for a few months during the bear market but they’re still there. If you’re in for ten years I’d say there’s no reason to sell, but if you’re in for less it may be time to consider it."
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