Legal & General Investment Management (LGIM) has reduced a negative “fair value adjustment” on its UK Property fund by 5 percentage points.
The firm initially placed a 5 per cent adjustment in the aftermath of the referendum on June 23 but then upped this to 15 per cent on July 7.
However, LGIM said the turmoil that has besieged the open-ended UK property fund sector had begun to stabilise, allowing it to reduce the fair value adjustment on its £2.3bn fund to 10 per cent.
An L&G spokesperson said: “While it remains difficult to predict the exact impact of the vote to leave on commercial property values, conditions in the market and within our peer group have begun to stabilise.
“We will continue to monitor market events closely, using all available sources and our experience of the property market.”
L&G’s UK property fund remains open to trading, unlike many of its peers. Since the decision to leave the EU, six open-ended funds have ceased trading, while Aberdeen has cut its property portfolio’s price for redeeming investors by 17 per cent.
