Aberdeen Asset Management has lifted a temporary suspension on its open-ended UK property fund, allowing investors to trade shares for the first time in a week.
The company is one of a number of managers that have been in their property funds following redemption requests from predominantly retail investors.
But while funds managed by , , and Henderson Global Investors remain closed, Aberdeen said investors could begin trading from noon today.
Aberdeen has effectively applied a 17% charge to any redemptions, to discourage investors from leaving and to protect remaining investors at a time when commercial real estate pricing is uncertain.
The (other managers have applied 28-day suspensions) was designed to give those investors that had requested redemptions to reconsider in view of what Aberdeen calls 鈥渁nti-dilutive measures鈥�. Aberdeen鈥檚 suspension was extended from an original 24-hour duration to a week.
Aberdeen sought to make it clear that the 17% charge is distinct from the 7% fair value adjustment it has made on its properties 鈥� the latter implies the value of its assets have dropped by 7%.
鈥淚t is important to note that the anti-dilutive measures we have put in place have been imposed solely to reflect the need to dispose of properties in order to provide liquidity,鈥� Aberdeen said.
The company said the diluted price is 鈥渘ot a reflection of what we believe is currently achievable in the absence of undue pressure to sell properties鈥�.
It added: 鈥淎ccordingly, if future trading in the fund reverts to lower levels, we would expect to lower or remove the dilution adjustment, and the price would then revert to a level reflective of longer-term property values.鈥�
Martin Gilbert, CEO of Aberdeen, said investors should be 鈥渁ware that the price may be adjusted on a daily basis to reflect the funds鈥� requirement to provide liquidity and the need to protect all investors鈥�.
He added: 鈥淭he market may take time to find its level but I have no doubt that property will continue to play an important part in investors鈥� portfolios.鈥�
It is understood that the pressure on property fund managers to suspend trading is down to retail investors seeking to redeem capital following the EU referendum result.
Some funds are retail-only, although some 鈥� including the Aberdeen UK Property Fund 鈥� have a mixture of retail and institutional investors.
that some institutional funds have been experiencing an increase in redemptions following June 24.
