RE Open Ended Funds

SHB's picture
Rank: Neanderthal | 2,360

I suspect many of you are having the experience I've had these past couple weeks. Sitting at home, chatting with people on the cell phone, conversations are meandering and a hell of a lot longer than they were 4 weeks ago.

In one of these I heard a story that certain open ended RE funds are having a potentially devastating amount of redemption's. I'm not in this space but what I'm told is many of these funds can be redeemed on the previous quarter close valuations. Which meant outflows from January-March were based off 12/31/19. Obviously in March that means a fair amount of arbitrage. I've heard of two specifically who have had issues, a Metlife open ended fund and the notorious UBS Trumbull Property Fund which was already on deaths door but may now be a dead man walking.

Anyone heard of this gossip or is this another pandemic tall tale being weaved.

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Apr 3, 2020
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