Aberdeen lifts trading suspension on UK property fund

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

Aberdeen lifts trading suspension on UK property fund
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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.”