Two weeks ago we raised the alarm about property funds. We have since posted our view of the risk to our website. Other property fund managers have now followed Standard Life's lead.
As always there are calming voices pointing out that the property market, as a long-term investment, remains secure. They quote examples such as a typical pension fund portfolio that may have part of its asset allocation as commercial property, those asset allocations are not likely to materially change and about that we would not disagree. However, what they don't talk about, and there are many of them, are those investors who have disproportionately invested in property funds, some have 100% exposure to this single asset class. Of those, a percentage of them are elderly and in pension drawdown, they are the ones who risk their lives being spoilt.
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