How well do you know closed-ended property funds?

A sudden loss of confidence in UK property following the EU referendum led to the suspension of several open-ended property funds. Now the FCA is seeking ways of making these funds work better, which may involve more frequent trading suspensions.

In the meantime, closed-ended property funds have gained in popularity with financial advisers and wealth managers.

In the three months following the EU referendum result, the AIC’s Property Direct – UK sector was the most purchased sector on adviser platforms, and it has remained within the top five most popular sectors ever since. Recent research from the FT showed that closed-ended property funds are now more widely held than their open-ended counterparts in the model portfolios of discretionary fund managers (DFMs).

All this means that it’s more important than ever to understand the differences between open-ended and closed-ended property funds. Our new 30-minute CPD course is designed to bring you up to speed, and covers:

• How both types of fund respond to market stress
• The impact of cash drag, gearing, and discounts and premiums
• Performance differences and the reasons for them
• Correlations with equities
• The differences between REITs and other property investment companies

You can take the course within Learning Zone (log-in required). Once you have accessed Learning Zone, look for the course called AIC320 Property.

If you’re not registered on the AIC’s financial adviser website, you can set up an account quickly here.

The course is designed as structured CPD and accredited by the CII, CISI and PFS. CPD certificates will be automatically generated on successfully completion.

In addition to this course on property, Learning Zone currently offers the following courses:

• An introduction to investment companies (AIC100)
• Discounts and premiums (AIC110)
• Gearing (AIC120)
• The income features of investment companies (AIC130)
• Private equity (AIC310)

All these courses can be accessed within Learning Zone, our online training centre for financial advisers and wealth managers.