• More than £8bn assets in suspended property funds
• Aviva and Aberdeen Standard Life latest to close funds
Ryan Hughes, head of active portfolios at AJ Bell, comments on the closure of the Aviva and Aberdeen Standard Life property funds:
“With pricing uncertainty in the commercial property market, it was inevitable that further funds would have to suspend. This is done to protect existing investors and stop investors who wish to sell redeeming at an artificially high price. So, while this will be hugely disconcerting for investors who are trapped in these funds, it’s important to remember the underlying reasons for asset managers making this move.
“Coronavirus is having an unprecedented impact on financial markets and we are all having to adjust to the new reality of serious economic disruption, notwithstanding the impact it is having on people’s lives. Fund suspensions are a tool in the armoury to protect investors and as the world looks for ways to tackle the virus, this is one necessary step to ensure that financial markets do not become totally disorderly. Now is a time to be patient and over time, it is expected that equities, bonds and property valuations will settle and allow a normal market to function again.”
Highlighted funds are the ones that have suspended – total assets £8.1bn
|
Performance (%) |
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|
Fund |
Fund Size |
Cash levels |
1m |
3m |
6m |
1yr |
3yr |
5yr |
10yr |
|
Aberdeen UK Property |
£1,050m |
8.25%* |
-0.5 |
-2.7 |
-5.3 |
-8.1 |
- |
- |
- |
|
Aviva Inv UK Property |
£460.7m |
19.25%** |
-0.1 |
-1.2 |
-5.5 |
-6.5 |
3.8 |
0.7 |
31.9 |
|
BMO UK Property |
£509.9m |
27.4%* |
0.1 |
6.0 |
6.2 |
0.0 |
9.5 |
19.2 |
- |
|
Janus Henderson UK Property PAIF |
£1,975.2m |
16.4%* |
0.4 |
0.8 |
1.5 |
2.7 |
16.3 |
20.4 |
66.6 |
|
Kames Property Income |
£585m |
11.9%** |
0.3 |
-0.1 |
0.1 |
1.4 |
5.4 |
18.7 |
- |
|
L&G UK Property |
£944.8m |
26%* |
-0.4 |
0.3 |
1.1 |
2.4 |
16.7 |
29.7 |
84.5 |
|
LF Canlife UK Property |
£365.3m |
18.2%** |
-0.1 |
-1.0 |
-1.6 |
-1.9 |
- |
- |
- |
|
M&G Property Portfolio |
£2,338.5m |
4.8%* |
-0.5 |
-0.3 |
-5.3 |
-7.6 |
1.7 |
2.9 |
39.2 |
|
Royal London Property |
£412.4m |
NA |
0.2 |
0.1 |
0.4 |
0.4 |
9.2 |
22.3 |
96.9 |
|
Standard Life Investments UK Real Estate Platform |
£1,710.9m |
17.5%* |
0.1 |
0.0 |
-0.7 |
-1.6 |
9.8 |
11.5 |
47.8 |
|
Threadneedle UK Property Authorised Investment Fund |
£1,115.6m |
14.3%* |
0.2 |
0.4 |
-0.2 |
0.5 |
3.6 |
13.1 |
44.5 |
|
Average |
- |
|
-0.03 |
0.22 |
-0.83 |
-1.67 |
8.44 |
15.38 |
58.78 |
|
Source: FE. Data accurate to 17/03/20. Highlighted funds are those that have suspended.*Based on January factsheet.**Based on February factsheet. NA = not available. |
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