The BMO Property Growth & Income fund has reopened, having closed amid a wave of other open-ended property vehicles in March as a result of valuation concerns stemming from the ongoing pandemic-driven market sell-off.
BMO GAM was among SJP, Columbia Threadneedle, LGIM, ASI, Kames Capital and Janus Henderson in firms forced to suspend their property funds in March as their independent valuers declared they were unable to accurately or fairly value the properties in their portfolios.
PA's sister title Investment Week understands that BMO GAM's independent valuers are attempting to lift their "uncertainty" clauses on a sector-by-sector basis, with under pressure sectors like retail likely to be the last.
BMO Property Growth & Income comprises both direct property and property securities, sitting within the IA Property Other sector, and was therefore it was "no surprise" it was able to open sooner due to its allocation of around 30% to physical property, co-founder of Fairview Investing Ben Yearsley explained.
He added that while it is good news that the suspension has been lifted, he does not "expect many others yet" as "massive question marks" remain "over daily dealing funds with mainly physical property".
Managed by George Gay and Marcus Phayre-Mudge, the fund is down 8% and 0.2% over one and three years respectively, while it has returned 16% over five years, according to FE fundinfo. The IA Property Other sector is down 7.7% over one year, and up 4.3% and 21.4% over three and five years respectively.
BMO GAM has been contacted for comment.
The industry's wake-up call to end racism and boost diversity
Several managers join from Merian
Largest strategic partnership to-date for Pacific
World and Emerging Market exposures
Stricter than England
Need to agree on valuation method
Pandemic second wave remains biggest tail risk
Lack of support