Prominent asset managers are playing a giant game of whack-a-mole as a wave of redemptions hit multi-billion dollar property funds on either side of the Atlantic. Wealthy investors panic as high inflation and recession threats send fund valuations sliding.
US fund manager BlackRock is the latest to suspend redemption requests from investors in its £3.5 billion ($4.2 billion) UK property fund.
The world’s largest asset manager told clients with money in the BlackRock UK Property Fund that it would defer redemption requests made at the end of September 2022 and due this month, according to Bloomberg, citing one person familiar with the matter.
The open-ended UK real estate fund has been hit with a surge in demand for redemptions. The fund is only open to professional investors and is based out of New Jersey. There’s been mounting concern that soaring interest rates and economic uncertainty will continue pressuring valuations lower.
www.zerohedge.com/markets/fire-spreads-blackrock-suspends-withdrawals-ps35-billion-uk-property-fund