Aberdeen lifts trading suspension on UK property fund

Added 13th July 2016

Aberdeen Asset Management has lifted the trading suspension on the Aberdeen UK Property Fund.

Aberdeen lifts trading suspension on UK property fund

The fund was suspended a week ago alongside many of its peers as redemptions spiked following the EU referendum.

While trading is restored, there will however be the possibility of price adjustments on a daily basis, the firm said.

Aberdeen emphasised that the suspension was only planned to last a week, and it is simply sticking to this.

The suspension was put in place to allow those who placed orders by reference to the 6 July valuation point to reassess those trades and cancel them if they wished having been informed of the anti-dilutive measure put in place, Aberdeen said. Any un-cancelled orders for subscriptions and redemptions in the funds placed between 12 noon on 5 July and 12 noon on 6 July 2016 will now be processed at the diluted price as at noon 13 July 2016.

Aberdeen added that investors are now able to submit trades but at a diluted price that reflects the current market environment and the fact that short-term sales in the property market have ‘relatively penal consequences.’

Chief executive Martin Gilbert said: “Following the lifting of the week-long suspension, I am pleased that investors will now be able to trade shares in the funds. 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.”

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Alex Sebastian

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Alex joined Portfolio Adviser in April 2014 and has been a financial journalist since 2008. He has previously held editorial positions at the Financial Times Group and Euromoney Institutional Investor. Alex is NCTJ qualified and has a degree in economics from the University of Sussex.

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