Legal & General has reduced the discount on its £2.5bn property fund after applications for redemptions slowed.
Investors seeking redemptions will now face a loss of 10%, compared to the 15% fair value adjustment imposed in the aftermath of the EU referendum. The new value has been applied since July 15.
Asset managers closed around £18bn worth of funds following the referendum as redemption requests surged. However, L&G’s fund has remained open.
In a statement on Bloomberg, L&G said: “While it remains difficult to predict the exact impact of the vote to leave on commercial property values, conditions in the market and within our peer group have begun to stabilise.
“The fund’s liquidity position is robust and the asset management initiatives within the portfolio remain on track.”
• To send feedback, email louisa.clarence-smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette
