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

Advisers expecting more of asset managers since Consumer Duty

Advisers expecting more of asset managers since Consumer Duty

‘We actually need to understand one another better’

Hope Coumbe
clock 28 March 2024 • 1 min read
Fears tech limitations could stall MPS on its upward trajectory

Fears tech limitations could stall MPS on its upward trajectory

‘There have been a few changes and challenges around growth in general’

Hope Coumbe
clock 27 March 2024 • 1 min read
Partner Insight: Beyond 60/40

Partner Insight: Beyond 60/40

Invesco
clock 27 March 2024 • 5 min read