Aberdeen lowers dilution adjustment on UK Property

Added 21st July 2016

Aberdeen has reduced the dilution adjustment on its UK Property Fund and its feeder unit on the back of slowing redemptions the firm said.

Aberdeen lowers dilution adjustment on UK Property

The dilution adjustment on the property part of the portfolio and thus excluding the cash portion has gone from 18% to 8%, which equates to a dilution adjustment on the entire portfolio of 6.3%. This, the firm said, translates into a 7.5% uplift on the fund’s dealing price. However, the firm continues to apply a 7% fair value adjustment on the underlying property portfolio.

Martin Gilbert, Aberdeen CEO, said: “Our hope is that trading in the Funds continues to revert to more normal levels. This should allow us, in time, to remove the dilution adjustment altogether. The post-referendum environment now seems to be settling down with thoughts of reducing property holdings being balanced by the fundamental long-term attractions of the asset class.”

The latest move comes a week after it announced it had lifted the trading suspension on the fund. 

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Geoff Candy

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Geoff Candy joined Portfolio Adviser as News Editor in May 2014. He has been a financial journalist and broadcaster since 2005 and, in that time has worked in both South Africa and the Netherlands, covering everything from high street retailers and construction companies to mining and insurance.

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