Aviva Investors has resumed trading on its European property fund after improvements in its liquidity position.
Aviva Investors suspended trading on the fund, which is managed by Julian Taylor, on November 4, 2008 after the fund’s cash level diminished from the beginning of the year.
The company says that the fund’s most recent real estate sales have restored liquidity to a point where it can meet its outstanding redemption requests and ongoing capital expenses.
The fund now has £250m under management.
Once all the outstanding redemption requests have been fulfilled and after an allowance for the fund’s ongoing capital expenses, the net cash weighting of the fund is expected to be around 20 per cent.
Aviva says that while new investments are being accepted, the company will no longer be accepting subscriptions into the existing sterling hedged share classes, which the group says will reduce the fund’s potential collateral liabilities and improve liquidity.
The company is also launching two new sterling share classes, which will not be hedged against the euro and will be available for future sub- scriptions.
Whitechurch Securities managing director Gavin Haynes says: “Liquidity issues were a big wake-up call and I expect there is a bias to those funds that negotiated them better.”