Aberdeen property fund is open for business again
Aberdeen has re-opened its property fund, after it suspended trading due to heavy outflows, draining the fund's cash reserves.
The fund was one of six that closed after investors scrambled to get their cash back due to uncertainty about UK property after the Brexit vote.
Read more: Property fund to sell Oxford Street property to meet investors' withdrawals
Property funds that remain closed include Aviva, Henderson, M&G, Standard Life and Threadneedle.
Aberdeen party suspended the fund to give investors time to re-think their redemption requests after the fund introduced a 17 per cent dilution levy.
The fund has also been approaching investors looking to sell London properties. City PM learned earlier this week Aberdeen was looking to sell a property on Oxford Street; it is also looking to dispose of 10 Hammersmith Grove.
Read more: Bank of England was warned over property fund trading suspensions after Brexit
Laith Khalaf, senior analyst at Hargreaves Lansdown, said: "Investors are now playing lucky dip with the Aberdeen UK property fund, as the price could move sharply up or down, depending on daily flows.
"Anyone who believes they are picking up a bargain could therefore be in for a nasty surprise if a lot of other investors are thinking the same way. This risk does exists in more normal trading within open-ended property funds, but the high levels of the dilution levy imposed make it a particularly high stakes game at the moment."