This prompted wrap platform Novia, which the fund was listed on, to suspend access until the situation had become clearer. The company behind the fund said it expected to receive funding from Europe and local government in Spain.
Understanding risk
The main thing, therefore, when searching alternative property funds is to make sure clients understand the risks of listed vehicles where this is an option, and that advisers understand what protections are afforded to their clients in funds based in jurisdictions such as Guernsey should things go awry.
And if nothing other than plain vanilla will do, Apollo’s Mr Hughes said he was more relaxed about the need to diversify, claiming property funds which failed during the crisis were “non-core funds where people tried to be too clever”.
“Today managers of large, well run UK commercial property funds have learned a lot and are much better placed to withstand another property crisis,” he said.
