What to Sell?

Some sales are inevitable, however, as funds are still reacting to historically high levels of redemptions pre-Brexit. The question is which assets will be released, and who will buy them? The immediate choice for the funds is whether they will divest prime or secondary stock. Prime tends to hold its value better under pressure and so discounts are likely to be slimmer.  However, fund managers will be mindful of the cost and difficulty of acquiring hard-won trophy assets over the past five years and may be reluctant to give these away. International buyers eyeing currency opportunities are already waiting in the wings. Meanwhile, the majority of the market, which unlike in 2008 has no compulsion to sell, will wait and watch with interest.