Accounting glitch hits Glanmore

An unexpected accounting side-effect made itself felt when the Net Asset Value (NAV) of the Glanmore Property fund fell by around 2.5% after it switched into an open-ended vehicle. The reason for the drop was that accounting standards for open-ended funds are different from closed-ended ones – the NAV has been adjusted to take account of the current negative values of the fund's hedging instruments, reducing the total return for the 12 months to 31 December to 6.34%. Paul Field, sales manager of commercial property funds at Tilney Investment Management, said: "I appreciate that this is a...