Aberdeen Asset Management marked down its funds by 17% last night to try to stave off a rush of redemptions.
So far this week six open property funds have suspended trading in the wake of Brexit.
The fund, which invests in 79 UK properties, temporarily suspended trading yesterday midday until midday today.
It said that the dilution adjustment had been put in place to protect value for longer term investors.
Martin Gilbert, chief executive at Aberdeen Asset Management, said: “Our focus has been, and continues to be, treating all customers fairly.
“We have worked hard to deliver realistic options to clients: redeem at a price which reflects the relatively penal impact of short term trading in the property market, or remain in the fund, protected by the anti-dilutive measures we are taking, and look through to the longer term fair value which we expect to be available in less pressured markets.
“Reducing the share price of the fund reflects the changing market conditions over the past week or so and uncertainty around prices in the property market; sellers requiring liquidity are having to market properties at sometimes significant discounts to their recent valuations.
“Aberdeen’s property fund continues to hold a good level of cash, which permits us to offer these options to investors, but it is imperative that we protect remaining holders by fairly reflecting the impact of short term trading on values provided to redeeming shareholders.
“The property market itself may take some time to find its level but we believe that the same factors that made property a good long-term investment yesterday remain true today.”
• To send feedback, e-mail david.lindsell@estatesgazette.com or tweet @DavidLinsellEG or @estatesgazette
