View more on these topics

Aberdeen investors pull out of trades after exit fees added

Aberdeen Gilbert Martin Gilbert 700x450

Aberdeen Asset Management says many trades submitted last week on its property fund have been withdrawn by investors following the application of new exit penalties.

Chief executive Martin Gilbert says the fund will extend its suspension on trading for two more days following requests from two platforms.

Last week the property fund announced it was increasing exit fees to 17 per cent as funds across the property sector face liquidity concerns in the aftermath of the UK’s vote to leave the European Union.

Trades submitted after midday 5 July would be affected.

Following today’s extension, investors will have until midday 13 July to cancel or amend any redemption requests. Those who do not request a cancellation will have their redemptions processed on Wednesday at the diluted dealing price.

Gilbert says: “Following the application of the dilution adjustment the vast majority of trades submitted prior to temporary suspension last Wednesday have been reviewed and, in many cases, have been withdrawn by investors.”

He adds: “Whilst we are in a good position to lift the suspension today, given the exceptional circumstances and specific requests we have received from two large platforms, we believe it is appropriate to allow a further two days for remaining investors to be contacted in the interests of treating all customers fairly.”

Gilbert offered thanks to distributors and intermediaries “who have worked tirelessly with us to ensure investors are aware of the actions we’ve taken and of the options they have”. 

More than half the £25bn property fund sector is now suspended with Columbia Threadneedle Investments and Henderson Global Investors yesterday suspending dealing in property funds worth £5.3bn.

M&G Investments temporarily suspended trading in the £4.4bn M&G Property Portfolio and its feeder fund, while SLI stopped trading on its £2.7bn UK Real Estate fund in response to redemption requests, and Aviva Investors suspending trading on its £1.9bn Property Trust.

This morning Kames announced it has waived dealing costs for new investors to encourage investment in the fund.

Aberdeen AM has one of the highest levels of liquidity among similar funds and had sold all quoted property investments in the week prior to the UK’s vote to leave the European Union.

Recommended

FCA logo glass 2 620x430

FCA sets out guidance for property fund suspensions

The FCA has released guidance for fund managers on how to deal with “higher than normal” redemption requests on their property portfolios. The guidance follows this week’s rash of suspensions on nine property funds, worth around £14bn, following the EU referendum. The FCA says it expects fund managers to fully understand their responsibilities and the […]

Property-Commercial-Real-Estate-Building-Mortgage-600x385.jpg

Kames furthers pricing adjustment on £409m property fund

Kames has made its second pricing adjustment to its property income fund and its feeder fund since the UK’s vote to leave the European Union. The initial reduction of 5 per cent in fair-value pricing has now been reduced to 10 per cent on direct property values. It equates to 8.5 per cent of the […]

The Merchants Trust PLC – April 2017

Welcome to the latest update for The Merchants Trust PLC from the Trust’s portfolio manager, Simon Gergel. Portfolio Review The Merchants Trust reported results this month and the directors were pleased to announce a 35th consecutive year of dividend growth (subject to shareholder approval at the AGM). The Company is proud to be highlighted as […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment