Aberdeen may add income share to property Oeic

Aberdeen Asset Management is considering adding an income share to its £350m Property Share Oeic. At present the fund carries only an accumulation share class but Gary Marshall, head of collective funds at Aberdeen, says it is assessing its position after enquiries from fund of fund managers and discretionary managers.

Marshall says: “Owing to the weakness of the property market the fund has been noticing fund of funds and other discretionary managers looking to take advantage of the overselling.”

While not suggesting that property would be an income asset class, Marshall says that several income managers often want to add some growth into their portfolios.

“As a rule we only set up income shares for funds, which have an objective to deliver income, but it can be done for any fund,” he adds. “We have not been overwhelmed by income managers but some have enquired, so we now want to see if there is wider interest in this exercise. This exercise will take four to six weeks.”

The fund, managed by the group’s pan-European equities team, was launched in 1990 as a unit trust before converting to an Oeic in 2006.

It has suffered weak performance over the past year, being placed bottom out of 81 funds in the IMA Specialist sector. This follows a fall of 38.3% compared with the sector average fall of 3.6%.

“Unlike the bricks and mortar funds, this fund has no liquidity problems,” says Marshall.

“However, it has been affected by the overall negative sentiment, but it’s a two-way street. The professional investors look for opportunities in the market that have been oversold and this is why we are seeing more interest in the fund.”