Aberdeen Asset Management has cut the penalty for cashing in holdings in its property funds to pre-referendum levels.
The dilution adjustment in the Aberdeen UK Property Fund and Aberdeen UK Property Unit Trust was lowered to 1.25% on Monday, just weeks after the funds reopened to redemptions.
Discounts were as high as 24% in the days after the suspensions ended.
There is still a 7% reduction in the underlying value of the property portfolio.
Aberdeen said its redemption discounts could rise again without notice as it continues to monitor its funds’ trading.
Martin Gilbert, chief executive of Aberdeen, said: “It is encouraging to see some calm and order returning to the UK property market.”
He added: “While property values have fallen following the UK’s vote to leave the EU, investors do now appear to be taking a more measured assessment of property as a long-term investment. Indeed, we are seeing some signs of buying activity in light of recent market moves.”
Aberdeen was one of seven companies to close its property funds to redemptions following demands for withdrawals at the start of July.
Trading in five funds – Aviva Investment Property Trust, Henderson UK Property Trust, M&G Property Portfolio, Standard Life UK Real Estate and Threadneedle UK Property Trust – is still closed.
Explainer: What’s going wrong with open ended retail funds >>
11 July: Aberdeen extends suspension of property funds >>
13 July: Aberdeen unfreezes property funds >>
23 July: Funds ease off redemption penalties as conditions normalise >>
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