Aviva Investors lifts suspension on Brexit-hit property fund


The asset manager has told investors in the roughly £1.5 billion Aviva Investors Property Trust that dealing in the fund will resume on December 15. In an emailed statement on November 23, Aviva Investors also said that Mike Luscombe, co-fund manager of the property fund, will retire at the end of January.

Aviva Investors was among the largest commercial property managers in the UK forced to temporarily close a fund following the UK’s June 23 decision to leave the EU.

The result spooked investors and led to widespread redemption requests at funds managed by the likes of Aberdeen Asset Management, M&G Investments, Henderson Group, Columbia Threadneedle and Standard Life Investments. In a bid to avoid a fire-sale of assets in the funds, which typically offer investors daily liquidity, the fund managers closed the gates.

All of the asset managers that suspended funds have since either reopened them or announced plans to do so.

Ed Casal, chief executive of Aviva Investors Real Estate, said in the statement: “We are confident that the Trust holds a robust and diverse portfolio of properties; providing significant potential for growth, a strong income stream and the opportunity for further income growth.”

FN reported in September that the FCA had started meeting with UK asset managers to discuss ways to prevent similar fallout in the future, including possibly introducing longer redemption periods on these funds.

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