Aberdeen Asset Management has again extended the suspension on its UK Property fund by another two days, despite claiming to be “in a good position” to lift it today (July 11).
Last week the vehicle was among several property offerings to suspend dealing in a bid to stem a run on assets amid uncertainty for the asset class.
Several open-ended UK proprty funds applied indefinite trading suspensions to halt redemptions.
However, after applying a 17 per cent fair value adjustment on July 6, Aberdeen planned to cease trading for 24 hours. This was then extended until the end of today (July 11) before the second extension to July 13.
In a statement, Aberdeen chief executive Martin Gilbert said that while the negative value adjustment had proven effective at stemming outflows, the asset manager had opted to hold its suspension for two more days while remaining investors were contacted.
“Following the application of the dilution [fair value] adjustment, the vast majority of trades submitted prior to temporary suspension last Wednesday [July 6] have been reviewed and, in many cases, have been withdrawn by investors,” he said.
Property funds and suspensions as of July 11
|Strategy||Assets under management (£bn)||Bid pricing||Fair value adjustment||Dealing suspended|
|Aberdeen UK Property||3.2||X||17%||X|
|Aviva Investors Property Trust||1.8||X|
|F&C UK Property||0.3||5%|
|Henderson UK Property||3.9||X||5%||X|
|Legal & General UK Property Trust||2.3||15%|
|M&G Property Portfolio||4.4||X||4.5%||X|
|Standard Life UK Real Estate||2.9||X||5%||X|
|Threadneedle UK Property Trust||1.4||X||X|
*when fund cash levels are taken into account
“Whilst we are in a good position to lift the suspension today, given the exceptional circumstances and specific requests we have received from two large platforms, we believe it is appropriate to allow a further two days for remaining investors to be contacted in the interests of treating all customers fairly.”
The fund remains closed to new subscriptions and redemptions until after noon on July 13.