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Report for the Association of Real Estate Funds

A Review of Real Estate Fund Behaviour following the EU Referendum

John’s report for AREF, "A Review of Real Estate Fund Behaviour following the EU Referendum", has now been published. This report is an independent review of fund behaviour following the European Union Referendum vote in the United Kingdom on 23rd June 2016. It looks at what actions fund managers took, why they did so and what limitations restrict different behaviour. As it was primarily an issue of meeting liquidity requirements in open-ended funds, there is particular focus on this.


You can download the report here.


We believe that the regulatory and operating framework for retail investment in the UK in practice restricts retail investors to daily traded funds. Investors should have the choice to also invest in less liquid products, and those who choose to continue to invest in daily traded products need to be fully aware of the cost of liquidity, the risk that liquidity might not be available when they want it and the differences between funds. For investors to understand the products in which they are investing, communication by fund managers and financial advisers needs to be improved.


There are many operational similarities between model portfolios for retail investors, unit linked insurance products and defined contribution pension schemes. These are an increasingly important pool of capital and it is vital that they continue to be able to invest indirectly in illiquid assets including real estate. The real estate industry, the investment product providers and the regulators need to work together to ensure that choice is widened rather than reduced.




AREF seminar "The Future of Real Estate Funds & Illiquid Assets"

London, 4th July 2017

John spoke at this seminar covering the report and the AREF response to the FCA discussion document on illiquid assets. John's slides are here.

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