F&C has moved its £270m UK Property fund from bid to mid pricing – reducing the impact of redeeming investors as positive inflows calm nerves at the fund house.
The open-ended fund, which is predominantly held by institutional investors but has retail clients, previously switched the fund from the default position of offer pricing to bid in the aftermath of the June 23 vote, essentially adding a 6 per cent charge.
It then swiftly added a 5 per cent ‘fair value adjustment’ leaving a total price impact of 11 per cent for redeeming investors.
F&C said its positive move back to mid pricing reduced the charge by around 4 percentage points. However, its ‘fair value adjustment’ remained in place leaving a total 7 per cent charge compared to pre-referendum levels.
A spokesperson from F&C said: “As a result of positive flows into the F&C UK Property fund we moved from bid pricing to mid pricing.
“We continue to use fair value [adjustment], however, the special assumption valuation supplied by our independent valuers (Knight Frank) has changed.
F&C, joins Aberdeen and Legal & General Investment Management (LGIM) in having reduced the impact of negative pricing on investors as markets calmed weeks afer the June 23 vote.
However, trading continues to be suspended on the Henderson, Standard Life, Aviva, Columbia Threadneedle, and M&G UK property funds. Aviva alerted investors that the fund may not reopen until 2017.
