Aberdeen Asset Management lifts property fund suspension

Aberdeen Asset Management has lifted the suspension of its £3.2bn UK property fund.

Aberdeen had temporarily suspended the fund last week and cut its value by 17% as it looked to contain withdrawals following the vote to leave the European. It said it wanted to give investors additional time to consider their options “in these exceptional circumstances”.

Aberdeen said last week: “In line with our investment approach, the portfolio was positioned defensively prior to the referendum with one of the highest levels of liquidity of all similar funds and having sold all its quoted property companies investments in the week prior to the referendum and holding this as cash.

“The direct property portfolio invests in 79 UK properties across retail, industrial, office and other sectors. It has been positioned defensively for some time, with a view to reducing risk and with a focus on durable income streams and the potential for long-term income growth. We recognise that the temporary suspension and dilution adjustment will be inconvenient for some shareholders, but Aberdeen remains absolutely focused on attempting to provide liquidity to shareholders who wish to access it at an appropriate price, while protecting value for remaining shareholders: our aim is to ensure all shareholders are treated fairly.”

As of midday, investors are now able to trade in the fund, although at a lower value which the asset manager said reflects the current market environment.

Chief executive Martin Gilbert said: “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."

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: "Investors are now playing lucky dip with the Aberdeen UK property fund, as the price could move sharply up or down, depending on daily flows. Anyone who believes they are picking up a bargain could therefore be in for a nasty surprise if a lot of other investors are thinking the same way.

"This risk does exists in more normal trading within open-ended property funds, but the high levels of the dilution levy imposed make it a particularly high stakes game at the moment."

At 1512 BST, Aberdeen shares were up 0.7% to 297p.