Aberdeen extends property fund suspension on investor demands


Aberdeen Asset Management has extended suspension of trading on its UK property fund and its property feeder unit as investors ask for more time to mull whether they want to make post-Brexit redemptions.

Investors who sought to exit the fund after midday on 6 July can now wait until midday Monday to consider whether to remain in the fund. They initially only had 24 hours to make a decision.

Yesterday the property fund announced it was increasing exit fees to 17 per cent as funds across the property sector face liquidity concerns in the aftermath of the UK’s vote to leave the European Union.

More than half the £25bn property fund sector is now suspended with Columbia Threadneedle Investments and Henderson Global Investors yesterday suspending dealing in property funds worth £5.3bn.

M&G Investments temporarily suspended trading in the £4.4bn M&G Property Portfolio and its feeder fund, while SLI stopped trading on its £2.7bn UK Real Estate fund in response to redemption requests, and Aviva Investors suspending trading on its £1.9bn Property Trust.

Aberdeen AM announced it would be suspending trading between midday Wednesday and Thursday to allow impacted investors to decide whether to carry through with redemptions.

Martin Gilbert, chief executive of Aberdeen Asset Management, says: “Investors who placed trades yesterday have asked for more time to consider whether to withdraw their redemptions which we have now made arrangements to provide them with.”

Gilbert says feedback to their approach, which contrasted to indefinite suspensions from other major UK property funds, had been positive. “Investors appreciate that we are continuing to provide liquidity, albeit at a discounted price which reflects current market conditions and the fact that short term trading in the property market has relatively penal consequences.”