Welcome back: Aberdeen Asset Management lifts suspension on property fund
Aberdeen Asset Management has today lifted the suspension on its property fund, one week after several asset managers put the brakes on their funds.
Last week, Aberdeen announced that it would be suspending trades on its Aberdeen UK Property Fund and the Aberdeen UK Property Feeder Unit Trust to protect the value of the fund for longer-term investors and to give Aberdeen time to dispose of properties to protect liquidity.
Investors will now be able to start submitting trades at a diluted price that better reflects the current market from noon today.
Read more: Fourth property fund suspension announced in wake of Brexit vote
"Following the lifting of the week-long suspension, I am pleased that investors will now be able to trade shares in the funds," said Martin Gilbert, chief executive of Aberdeen Asset Management. "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.
"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."
By Wednesday last week, several asset managers had put a halt to trading on their property funds, essentially closing the doors on £15bn-£20bn worth of funds.
Read more: UK property funds could be in for a "bumpy ride" after Brexit vote
Aviva, M&G and Columbia Threadneedle are among those which also suspended trading.
Meanwhile, it emerged yesterday that the Bank of England was warned by the Financial Conduct Authority that many property funds may shut the gates thanks to an influx of outflows following the Brexit vote.