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. 

Sponsors

Overseas earners will be key amidst 2017 inflation

Sponsored by Neptune

Overseas earners will be key amidst 2017 inflation...

A by-product of sterling weakness is inflation, and we expect this to continue to gather steam over the coming months, with energy and food prices the hardest hit....

Kames Income Hub

home_research_centre

Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

AXA Distribution Fund
AXA Distribution Fund

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Geoff Candy

Group digital editor

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.

Profiles

Viewpoint

Investment Strategy

Feature

Tweets

Events

PA Europe 2017
PA Europe 2017

Thursday 11 May
Furniture Makers' Hall

PA Channel Islands 2017
PA Channel Islands 2017

Wednesday 24 May
Royal Yacht Hotel, Jersey

PA UK Equity 2017
PA UK Equity 2017

Thursday 15 June
Radisson Blu Edwardian Bloomsbury Street Hotel

PA Investment Trusts 2017
PA Investment Trusts 2017

Tuesday 20 June
Furniture Makers' Hall

Sponsored Content

OTHER STORIES FROM LAST WORD...