Kames Capital has temporarily waived the 6.6 per cent large deal provision on new subscriptions to its property fund.
The asset manager has made the move on the Kames Property Income fund and feeder funds, effective from 8 July.
The fund is currently priced on a cancellation basis, meaning a large deal provision of 6.6 per cent would be charged. But the move to waive it makes it cheaper for new investors to put money in the funds.
“We have taken this decision in view of the exceptional market circumstances affecting the UK commercial property market following the outcome of the EU referendum,” says a statement from the firm.
“In this environment, we do not expect that the funds will acquire direct property assets in the immediate future, and so we consider this action to be in the interests both of existing and prospective investors.
“It is intended that the waiver will remain in place until we consider it appropriate to remove it in light of such factors as the funds’ allocation between direct property assets and cash returning to a normal level. We will provide notification of our intention to end the waiver.”