Some UK property funds limit withdrawals

Moves come as pension funds and other investors rebalance their portfolios into liquid assets such as cash after months of market volatility left them overexposed to commercial property

Pensions hold long-dated bonds that they match with expected payments to the pensioners of the future, prompting collateral calls when gilt yields spiked.

Asset managers including Blackrock and Schroders are limiting institutional investors’ withdrawals from some UK property funds after a wave of requests to move money.

Schroders’ UK Real Estate fund has deferred redemptions due at the start of October to as late as July 2023, which will give the £2.8bn (€3.2bn) fund more time to ensure it has enough cash to cover the payments.