Retail investors who have rushed into bricks-and-mortar property funds could find themselves trapped if the large inflows into the sector turn into large outflows, Fidelity has warned.
Fidelity said investors could find the open-ended funds were not as open as they thought should they want to get out in droves.
Peter Hicks, head of Fidelity’s IFA channel, said the problem lay with funds that made direct, illiquid investments in developments, rather than those that bought shares in property companies. Fidelity plans to launch a closed-ended bricks and mortar fund next year.
02/04/07 FTfm 2
