Fund Management

Aberdeen Further Extends Property Fund Suspension In “Exceptional Circumstances”

Amisha Mehta Deputy Editor London July 12, 2016

Aberdeen Further Extends Property Fund Suspension In “Exceptional Circumstances”

The London-listed investment house said two unidentified “large platforms” had requested the extension.

Aberdeen Asset Management has suspended trading in its ÂŁ3.2 billion ($4.2 billion) UK property fund for another two days to 12pm Wednesday, 13 July. It aims to give investors more time to “consider their options in these exceptional circumstances,” the company said yesterday.

The company initially froze buying and selling of shares in the Aberdeen UK Property Fund and the Aberdeen UK Property Feeder Unit Trust last week for 24 hours until 12pm 7 July. It then extended the suspension to Monday, 11 July‎. 

“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of trades submitted prior to temporary suspension last Wednesday have been reviewed and, in many cases, have been withdrawn by investors,” said Martin Gilbert, chief executive of Aberdeen.

“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.”

Market uncertainties triggered by last month's shock Brexit vote have seen a number of other fund managers, including Standard Life Investments, Aviva Investors, M&G and Columbia Threadneedle Investments, suspend property portfolios following a wave of redemption requests from investors.

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