Aberdeen lifts week-long UK property fund trading suspension

Last Wednesday, Aberdeen ‘gated’ its UK Property Fund and Aberdeen UK Property Feeder Unit Trust, meaning investors weren’t able to buy or sell units in the fund.

But as of midday today, Aberdeen confirmed investors have been able to trade, but at a ‘diluted price that reflects the current market environment’. The value of the fund has been cut by 17%.

A statement from Aberdeen said: “We recognise that the temporary suspension since 6 July 2016 and the anti-dilutive measures we have taken will have inconvenienced some shareholders, but Aberdeen remains absolutely focused on providing liquidity to shareholders who wish to access it, while protecting value for the remaining shareholders; our aim is to ensure all shareholders are treated fairly.”

Last week Standard Life Investments led the way by suspending trading in its Real Estate Fund after a rapid increase in redemption requests following the momentous Brexit vote.

As the UK’s third largest open-ended property fund for retail investors and with £2.9bn under management, this unsettled investors across the sector.

Other commercial property funds run by Aviva Investors, M&G, Standard Life, Henderson, Columbia Threadneedle and Canada Life, were also suspended.

Earlier this week, regulator the FCA reminded asset managers to always act in the best interest of their investors.