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Property Fund Update

July 2017

At Pareto, we are increasingly committed to ensuring our clients and partners are kept informed of the latest industry developments. As a follow up to our recent article on property fund suspensions we are now in a position to provide an update for clients & partners on the current situation.While the majority of fund managers have suspended trading, there are some funds that remain open but are applying charges to trades (known as ‘fair value adjustments’ or ‘dilution levy’) – for more information, please speak to your Pareto adviser.

Aberdeen Property Fund

Current Status; Suspended

No current information on when the suspension will be lifted. Deals placed after suspension will be traded on 11 July (subject to a 17% dilution levy for withdrawals). The same applies to associated feeder funds.

 

Aviva Investors Property Trust

Current Status; Suspended

Aviva are reviewing the position on a daily basis and have advised that they will inform us when the suspension is lifted.

 

Henderson UK Property

Current Status; Suspended

Henderson have advised that the position will be reviewed at least every 28 days. The same suspension applies to all associated feeder funds.

 

M&G Property Portfolio

Current Status; Suspended

M&G have advised that they will review the position at least every 28 days. The same suspension applies to all associated feeder funds.

 

Standard Life UK Real Estate

Current Status; Suspended

Standard Life are intending to lift the suspension as soon as possible, and the position will be formally reviewed every 28 days. The same suspension applies to all associated feeder funds.

 

Threadneedle UK Property Fund

Current Status; Suspended

No indication at this stage of when the suspension will be lifted, but Threadneedle Columbia are reviewing the position on an ‘ongoing basis’. The same suspension applies to all associated feeder funds.

 

F&C UK Property Fund

Current Status; Trading

This fund is currently open for trading. BMO Global Asset Management (which runs the fund) has applied a fair value pricing adjustment. As of 7 July this is 5%. This adjustment also applies to associated feeder funds.

 

Kames Property Income Fund

Current Status; Trading

Kames has applied a fair value pricing adjustment. As at 7 July this adjustment is 10%.

 

Legal & General UK Property Fund

Current Status; Trading

Legal & General has applied a fair value pricing adjustment. As at 6 July this is 15%. It has also reviewed the pricing of the fund to reflect that they are not currently purchasing new property. This affects all associated feeder funds.

 

Contact

If you are a current client of Pareto and have questions regarding recent developments, please contact your adviser who will be happy to help. Alternatively, if you are not yet a client of ours and would like to speak to one of our experts ,please call us on 0161 819 1311.

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