Real Estate

Dealing suspension

Dealing suspended on BMO UK Property Fund, BMO Property Growth & Income Fund and their feeder funds
March 2020

Risk Disclaimer

The value of investments and income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested.

The value of directly held property reflects the opinion of valuers and is reviewed periodically. These assets can also be illiquid and significant or persistent redemptions may require the manager to sell properties at a lower market value adversely affecting the value of your investment.

Our review and outlook is a marketing communication providing an overview of the recent economic and property market environment. It should not be considered as advice or a recommendation to buy, sell or hold investments. Nor is it investment research and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of its dissemination.

BMO Global Asset Management (BMO GAM) can confirm it has taken the decision to suspend dealing in both the BMO UK Property Fund and the BMO Property Growth & Income Fund (and their feeder funds), following material uncertainty being declared by the standing independent valuers in relation to the underlying assets in both portfolios to reflect the unprecedented ramifications of the global Covid-19 outbreak. The suspension is consistent with the FCA’s rules under COLL 7.2 and its Policy Statement 19/24, which require that funds should suspend trading of units if material uncertainty is applied to more than 20% of  a  fund’s immovable assets. The decision to suspend dealing in the Funds (and their Feeder Funds), in line with the FCA’s requirements, is designed to protect their investor base by restricting trades in units where uncertainty over the valuation basis could result in potential unfair treatment of investors.

The suspension is not related to any liquidity event concerning either Fund. We do not know at this point when dealing will resume, but we will review the continuation of the suspension on an ongoing basis.

Risk Disclaimer

The value of investments and income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested.

The value of directly held property reflects the opinion of valuers and is reviewed periodically. These assets can also be illiquid and significant or persistent redemptions may require the manager to sell properties at a lower market value adversely affecting the value of your investment.

 

Real Estate Insights

No posts matching your criteria