Funds open to individual investors investing in commercial property have cut their prices to deter sellers, says the Financial Times (Investment Advisers).
Most of the large funds have switched from an ‘offer’ to a ‘bid’ basis of valuation, meaning that they deduct the costs of selling property from the price they pay investors who are selling. As yet, the funds are not actually selling property since all have cash piles running into hundreds of millions that they use as a ‘liquidity cushion’, nor is the value of property falling, but fund managers say they are obliged to balance the interests of incoming and outgoing investors, and if cash is flowing out of the funds, investors who sell would get more than their fair share unless the funds are priced on a bid basis.
Easier travel claims ahead
Changes to insurance law that will take place in August are good news for policyholders, says the Financial Times. It is the biggest update in UK insurance law for over 100 years and will clarify what information policyholders have to provide to insurers, as well as removing many grounds for non-payment. It’s estimated that 45% of all large business insurance claims are disputed and that in 60% of those, policyholders get less of their claim paid than they expect. Holders of travel insurance policies, too, are expected to benefit from a reduction in disputed claims.
Dodgy lenders rejected
The National Association of Commercial Finance Brokers claims many small business lenders are as bad as payday lenders, says the Telegraph, charging extortionate interest rates to businesses that can’t get money from their banks. The trade body says it has rejected applications from dozens of dodgy lenders over the past year.
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About Us: Churchill Wealth Management is a team of independent financial advisors/financial advisers (IFAs) based in Clifton, Bristol. We provide independent financial advice, including pension advice, investment advice, inheritance tax planning and protection/insurance advice.