Aberdeen Asset Management has ended the week-long suspension of its UK Property funds but investors wishing to redeem still face a 17 per cent cut in prices.
The fund house said investors are able to submit trades as of midday today (July 13), at a diluted price “that reflects the current market environment and the fact that short-term sales in the property market have relatively penal consequences”.
The suspension, implemented last Wednesday as Aberdeen announced the 17 per cent price cut amid a host of rivals indefinitely suspending their own property funds, was originally scheduled to last 24 hours.
It was then extended by a further 24 hours last Thursday, and subsequently by an additional 48 hours, moves Aberdeen said were to allow those who had submitted trades prior to the suspension to consider their options.
The asset manager also made a separate 7 per cent “fair value adjustment” to the price of its portfolio at the time of the original suspension.
Aberdeen chief executive Martin Gilbert said today: “Investors should be aware that the price may be adjusted on a daily basis to reflect the funds’ requirement to provide liquidity and the need to protect all investors.
“The market may take time to find its level but I have no doubt that property will continue to play an important part in investors’ portfolios.”
An Aberdeen spokesperson added: “Although today’s price also incorporates a fair value adjustment of 7 per cent on property holdings, the diluted price is quite distinct from that and not a reflection of what we believe is currently achievable in the absence of undue pressure to sell properties.”
