Aberdeen Asset Management has reduced the price dilution for investors wishing to redeem from its UK Property fund following a slowing of outflows and the disposal of assets.
Earlier this month, Aberdeen imposed a 17 per cent dilution on its £3.2bn property fund‘s for redeeming investors, while temporarily suspending the fund to allow investors to reconsider.
The suspension was lifted last week and the price cut has now been reduced, resulting in a 7.5 per cent “uplift” on the dealing price, the firm said.
A 7 per cent “fair value adjustment” to the price of the portfolio at the time of the original suspension remains in place, however.
Martin Gilbert, chief executive at the fund house, said the change reflected an improving outlook for the funds.
“We have been able to reduce the temporary dilution adjustment applied to the funds significantly, reflecting the reduced levels of redemptions the funds have seen and the rebuilding of the funds’ cash levels,” he said.
“Our hope is that trading in the funds continues to revert to more normal levels. This should allow us, in time, to remove the dilution adjustment altogether.”
A handful of rivals have indefinitely suspended their property funds amid uncertainty for the asset class following last month’s EU referendum result.
Earlier this week, M&G Property Portfolio manager Fiona Rowley accused rival fund houses of coming to market too quickly to offload property assets. She said attempts to divest properties in her suspended fund had been hampered by a rival open-ended funds launching a firesale.
Legal & General Investment Management’s property vehicle, which alongside Aberdeen’s remains open to trading, also reduced its “fair value adjustment” earlier this week.