Aberdeen lifts suspension on property fund trading

AAM chief executive Martin Gilbert warned of further volatility ahead.
Picture: TSPL
AAM chief executive Martin Gilbert warned of further volatility ahead. Picture: TSPL
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ABERDEEN Asset Management (AAM) yesterday lifted a week-long suspension from trading in its property fund, a move that had been triggered by the outcome of the EU referendum.

The firm was one of a string of companies, including Aviva and M&G, to suspend trading in property funds worth around £18 billion last week after a rush of investors attempted to cash out following the Brexit vote.

Providing an update on the £3.2bn Aberdeen UK Property Fund, AAM chief executive Martin Gilbert warned of further volatility ahead.

READ MORE: Fresh blow for commercial property fund sector

He said: “Following the lifting of the week-long suspension, I am pleased that investors will now be able to trade shares in the funds.

“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.”

He added: “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.”

AAM also put in place a fair value adjustment of 7 per cent on its property holdings.

The firm noted: “We recognise that the temporary suspension since 6 July and the anti-dilutive measures we have taken will have inconvenienced some shareholders, but Aberdeen remains absolutely focused on providing liquidity to shareholders who wish to access it, while protecting value for the remaining shareholders; our aim is to ensure all shareholders are treated fairly.”