Frozen $3.3 Billion U.K. Property Fund Adds to Investors’ Woes

Frozen $3.3 Billion U.K. Property Fund Adds to Investors’ Woes

Assessment

Interactive Video

Business

University

Hard

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The video discusses the crisis in the UK real estate fund market, exacerbated by Brexit and liquidity issues. Investors seeking high returns are drawn to illiquid assets, leading to challenges when returns decline. Historical liquidity problems are highlighted, including those faced by Gam and Woodford. Recent fund freezes, such as M&G's, underscore the market's struggles, particularly in retail holdings. The UK real estate market is undergoing a correction, making it difficult to find buyers, which compounds liquidity concerns.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What was the impact of Woodford's investment strategy on his empire?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What trends have been observed in real estate fund investments over the past 14 months?

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