Will UK Smaller Company Funds be the next sector to leave UK investors stranded?

12 October 2016

SCM Direct were one of the first to highlight the liquidity issues connected with UK property funds, post the Referendum vote on 23rd June . We alerted the FCA on the business day after Brexit to the fact that major property funds with illiquid investments were being mispriced and needed to be re-priced and/or suspended. Property funds had a fundamental liquidity mismatch where investors were being allowed to buy or sell the fund daily, whilst the underlying investments often took months to buy or sell.