Abedeen cuts property fund dilution levy

Martin Gilbert AberdeenAberdeen Asset Management has reduced the dilution levy on its UK Property fund.

The asset manager says it has built up liquidity in the fund and has reduced the dilution on the fund to 1.25 per cent, which is the same as before the EU referendum. The fund still has a fair value adjustment of -7 per cent on the valuation.

Martin Gilbert, chief executive at Aberdeen Asset Management, says: It is encouraging to see some calm and order returning to the UK property market. While property values have fallen following the UK’s vote to leave the EU, investors do now appear to be taking a more measured assessment of  property as a long term investment.”

He adds that the fund has seen some buying activity in the fund, as some see the price cuts as an opportunity to access the asset class.

Aberdeen put a 17 per cent charge on those leaving the fund after liquidity dried up, following a flood of redemption requests after the EU referendum.

The asset manager warned that trading will be monitored and the levy could increase if liquidity reduces again.

Aberdeen saw £1.5bn of net outflows from its property funds in the three months to the end of June.