Kames has reduced the fair value adjustment on its UK property fund, following a “general improvement in sentiment”.
Kames says the valuation adjustment on the £369m Property Income and Property Income Feeder funds has been reduced from -10 per cent to -8.5 per cent. It has originally imposed a 5 per cent fair-value pricing adjustment to the funds, which was increased to 10 per cent on 7 July.
The valuation adjustment only applies to the direct property holdings in the fund, which means it equates to a 6.2 per cent change to the value of the funds.
The asset manager says it has also seen positive inflows to the fund. However, assets in the fund have fallen from £461m at the end of June.
A statement from Kames says: “There continues to be insufficient evidence in the market for property valuers to form an accurate judgement on valuations.
“A fair-value pricing adjustment continues to be applied to the direct property portfolio in the expectation of further pricing falls, however property values to date have not fallen as much as initially expected. At the same time, the market has benefited from a general improvement in sentiment.”
Kames’ move follows that of Aberdeen earlier this week, which reduced the fair value adjustment on its UK Property fund and feeder funds. It cut the adjustment to -5 per cent, from -7 per cent.