Standard Life Investments has followed Henderson in making a market adjustment to its property fund as a result of last week’s referendum.
As a Leave vote added uncertainty to the valuation of UK commercial property – and with a continued risk of net outflows – the fund house added a 5 per cent negative adjustment to the value of its £2.7bn UK Real Estate vehicle.
George Shaw’s vehicle already moved from offer to bid pricing in May on the back of retail outflows in the run up to last week’s referendum. However, the firm said it was necessary to make a further charge to “treat customers fairly”.
The fund will now also revalue assets on a weekly basis, instead of monthly.
This comes only a day after Henderson Global Investors added a 4 per cent adjustment on its £4bn UK Property fund.
An SLI spokesperson said: “The outcome of the UK referendum has resulted in increased uncertainty in valuations for the UK commercial property market and we believe that valuations have been negatively impacted.
“In order to reflect the fluid nature of the current market environment, Standard Life Investments has also moved from normal monthly valuations to weekly valuations for all of our open-ended UK commercial real estate funds.”
Investors have become concerned other open-ended property vehicles may follow suit.
An M&G spokesperson confirmed the there are no plans for price adjustments on its £4.7bn Property Portfolio. However, the fund is now monitoring valuations on a weekly basis, instead of monthly.
Before last week’s vote, Henderson, SLI, M&G, Aberdeen and Columbia Threadneedle all moved open-ended property fund pricing to bid pricing as sentiment turned against the asset class.
