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Aberdeen trims fair value discount on UK property fund

Published 12/08/2016, 16:19
Updated 12/08/2016, 16:30
© Reuters.  Aberdeen trims fair value discount on UK property fund
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LONDON (Reuters) - Aberdeen Asset Management (L:ADN) said on Friday it had changed the fair value adjustment on its UK Property Fund to minus 5 percent from minus 7 percent because market conditions continued to calm.

The fund was one of several UK-focused funds to be either suspended or priced lower after Britain's vote to leave the European Union in late June sparked a rush to redeem by many retail investors.

Martin Gilbert, chief executive of Aberdeen Asset Management, said the firm had moved to trim its fair value adjustment - designed to make sure the price of the fund mirrors the value of the assets - as market conditions had improved.

“There is further evidence that calm and order are being restored to the UK commercial property market... The quality of our holdings has allowed us to re-assess the fair value adjustment we are applying in the light of further emerging evidence."

Gilbert said the impact of the vote on pricing was most keenly felt in the Central London office market, which the fund's portfolio had little exposure to, while the retail and logistics markets were holding up "relatively well".

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