Aberdeen cuts dilution adjustment

Following the reopening of its UK property funds, Aberdeen Asset Management now confirmed that it has reduced the dilution adjustment of the funds, reporting a reduced level of redemption.

Aberdeen was one of many open-ended property fund providers which saw itself forced to temporarily suspend trading in the aftermath of the British EU Referendum. It lifted the suspension on the 13th of July.

According to Aberdeen,  cash levels of the funds had been rebuilt following the completion of a select number of property disposals.

Martin Gilbert, chief executive of Aberdeen Asset Management, comments: “I am pleased that we have been able to reduce the temporary dilution adjustment applied to the Funds significantly, reflecting the reduced levels of redemptions the Funds have seen and the rebuilding of the Funds’ cash levels. In all of this, our focus has been to treat all customers fairly by providing liquidity to those who wish to redeem whilst protecting the interests of long-term investors. Our hope is that trading in the Funds continues to revert to more normal levels. This should allow us, in time, to remove the dilution adjustment altogether. The post-referendum environment now seems to be settling down with thoughts of reducing property holdings being balanced by the fundamental long-term attractions of the asset class.”

Mona Dohle
Mona Dohle speaks German and Dutch and is DACH & Benelux Correspondent for InvestmentEurope.

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