Aberdeen reduces dilution levy on UK property funds to 7%

Hopes to remove dilution adjustment altogether in time

Natalie Kenway
clock • 2 min read

Aberdeen Asset Management has reduced the 17% dilution adustment on its £2.7bn UK Property fund and feeder funds, as redemptions begin to slow.

The group issued a statement saying it had been carefully monitoring flows in and out of the funds, market sentiment and the strategy's cash levels before deciding to reduce the dilution levy to 7% from 17%, resulting in a 7.5% uplift in the dealing price. Last Wednesday, the group re-opened the fund to trading after being forced to suspend for a week amid investors' post-Brexit vote rush to exit property exposure. However, it applied a 17% dilution levy to any deals made but said it would remove or adjust this should the situation change. The latest statement said: "Following the ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

PA360: 'Diversified approach has room for both active and passive' - David Coombs

PA360: 'Diversified approach has room for both active and passive' - David Coombs

‘Volatility is your friend if you are a long-term investor’

Jenna Brown
clock 01 May 2025 • 2 min read
PA360: FOMO can 'significantly' alter investors' risk appetite

PA360: FOMO can 'significantly' alter investors' risk appetite

Albemarle Street Partners’ Charlie Parker on the social element of investing

Isabel Baxter
clock 01 May 2025 • 1 min read
PA360: Investors must understand importance of 'proper diversification'

PA360: Investors must understand importance of 'proper diversification'

‘Investors don’t have to choose a single door’

Sahar Nazir
clock 01 May 2025 • 1 min read