UPDATE 4-Number of UK property funds suspended since Brexit vote doubles

Wed Jul 6, 2016 4:05pm EDT
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* Henderson, Threadneedle, Canada Life funds suspended

* Follow M&G, Standard Life Investments, Aviva Investors

* Financial service complaints body says 'troubled'

* GRAPHIC - Major UK property funds reut.rs/29ig4Lf (Adds temporary suspension by Aberdeen Asset Management)

By Simon Jessop, Carolyn Cohn and David Milliken

LONDON, July 6 (Reuters) - The number of British property funds suspended after the country's vote to leave the EU more than doubled on Wednesday, leaving over 18 billion pounds ($23 billion) frozen in the biggest seizing up of investment funds since the 2008 financial crisis.

Seven funds have pulled down the shutters after a wave of investors asked for their money back amid speculation about a possible drop in commercial property prices in reaction to the result of the June 23 referendum.

That in turn has raised concerns about the outlook for the broader financial system, given the risk of investors bailing out of other asset classes in a panic and of lenders to the sector such as banks suffering fresh balance sheet stress.

Henderson Global Investors, part of Henderson Group , said on Wednesday it had temporarily suspended trading in its 3.9 billion pound UK Property PAIF and PAIF feeder funds due to "exceptional liquidity pressures" given uncertainty after the Brexit vote and the other suspensions.   Continued...