S&P places Challenger Hybrid Property Funds on hold following the manager's decision to suspend fund applications and redemptions.
Standard & Poor's Fund Services has placed both the Challenger Hybrid Property Fund and Wholesale Hybrid Property Fund on hold.
S&P's decision follows the announcement by Challenger Managed Investment last week that fund applications and withdrawals had been suspended to preserve unit holder value.
Challenger said it has adopted this approach to rebalance the portfolio between direct and listed property, in response to recent market conditions.
Listed property securities and cash currently account for around 40 per cent of the fund.
Challenger has informed S&P that the underlying investments are performing in line with expectations and distributions will not be affected.
While re-opening the funds is fairly dependent on asset sales, Challenger has stated that assets will not be sold below what is considered fair value, S&P said.
The funds, which S&P had previously assigned 3 stars, will remain on hold until applications and redemptions resume.
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