AAM extends withdrawal lock on property fund

Aberdeen Asset Management has decided to extend for a further three months the lock it put on investors leaving its Aberdeen UK Active Property fund back in 2007

Shareholders in the portfolio will not be allowed to redeem in the traditional way until at least 10 March, which will be 39 months since Aberdeen first halted withdrawals in December 2007.

Since the suspension, some investors have been able to tender their shares at NAV when fresh investors wished to subscribe to the fund.

However, a year ago today, the fund’s board told its investors they still faced “further and considerable write-downs in valuations” if the manager was forced by redemptions to sell holdings.

The board stated, however, it remained committed to “lifting the suspension as soon as feasibly possible”.

As Aberdeen halted investors pulling out of the portfolio, a host of peers were also curbing dealing.

Limits were placed on investors in funds at Friends Provident, Aviva Investors, Close Investments, Axa and New Star Asset Management. Some have since reopened.

Aberdeen’s fund lost 19.3% in 2007, 48.8% in 2008 and 16.2% in 2009, underperforming its offshore Europe Property sector each year, according to Trustnet. Over one year it is up 6.5%.

A spokesman for Aberdeen did not return calls.

David Walker

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