Investors have withdrawn £2 billion from Aberdeen Asset Management’s (ADN +) property funds as the sector comes under pressure following the ‘Brexit’ vote.
The fund group revealed in a trading update that in the three months to the end of June £2 billion of withdrawals from its property funds was countered by just £484 million of investment, leaving a net outflow of £1.5 billion.
That led to assets under management from its property division falling from £19.6 billion to £18.5 billion over the three months.
Along with a number of other fund groups, Aberdeen was forced to place restrictions on withdrawals from its UK Property fund following the ‘Brexit’ vote. The group briefly suspended trading on the fund as it imposed a 17% charge on redemptions that has now been reduced to 7%.
‘Aberdeen was well prepared for such uncertainty, with a high level of cash held within the UK Property fund, the only Aberdeen fund with exposure to these issues,’ it told the market in its trading update.