Aberdeen extends UK property fund suspension

Aberdeen Asset Management will stop investors from getting out of its UK Property Fund and UK Property Feeder Unit Trust for a further two days.

The asset manager was expected to reopen its £3.2bn UK property fund on Monday, but it has extended the suspension of trading to provide additional time for investors to consider their options in these “exceptional circumstances” following the UK’s decision to leave the EU, Aberdeen said.

Martin Gilbert, chief executive at Aberdeen, said:

“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of trades submitted prior to temporary suspension last Wednesday have been reviewed and, in many cases, have been withdrawn by investors. We are sincerely grateful for the support we have received so far from those 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. 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.”

Last week, six asset managers put their UK commercial property funds into lockdown after the Brexit vote, leaving over £14.8bn (€17.3bn) frozen in the biggest seizing up of funds since the 2008 financial crisis.

Uncertainty after the Brexit vote and suspended trading in UK property funds drove the sterling below $1.30 to levels last seen in 1985 last week, as the Bank of England said economic risks caused by the referendum had “begun to crystallise”.

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