GB-EN Intermediary

Opportunities in property – the future of office and retail

A hybrid structure allows our BMO Property Growth & Income Fund to target a broader range of opportunities and avoid the liquidity trap.
October 2021

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Key takeaways:

  • Wealth managers are facing issues when it comes to their property allocations as a focus on daily dealing property funds can lead to challenges.
  • Why? Because many offerings are inherently biased to offices or retail by virtue of their objectives and benchmarks. The have little exposure to other sectors and opportunities. What about industrials, logistics, healthcare and student accommodation to name but a few?
  • We explore the structural issues facing the retail sector and discuss how office space and our working environments could evolve after the pandemic.
  • Liquidity is the other obvious challenge with likely changes on the way as regulators work to address the issues of holding inherently illiquid assets in a daily dealing fund structure.
  • We believe that our BMO Property Growth & Income Fund provides an attractive solution. Blending physical property with listed real estate ensures liquidity can be maintained. And the breadth of opportunities across Europe’s property markets allows the managers to nimbly tap into a much broader range of locations and sub-sectors.

If you would like to find out more, watch our next video

 
Risk Disclaimer

Views and opinions expressed by individual authors do not necessarily represent those of BMO Global Asset Management.

The value of investments and any 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.
Past performance should not be seen as an indication of future performance. 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.

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