Suspension of Aberdeen Standard Investments' Property Funds

The FCA has published a statement confirming that, in relation to uncertainty over the value of commercial real estate, suspensions can be used by managers of open-ended funds, in line with their obligations under applicable regulations.

Date:
19/10/20

PAIFS:

Temporary suspension of ASI Property Funds lifted

On 18 March 2020, in response to the huge disruption around the world caused by COVID-19 and significant uncertainty in the property market valuations, we were required to suspend the following funds:

  • Aberdeen UK Property Fund and Aberdeen UK Property Feeder Unit Trust
  • Standard Life Investments UK Real Estate Fund, Standard Life Investments UK Real Estate Accumulation Feeder Fund and Standard Life Investments UK Real Estate Income Feeder Fund

Our decision to suspend dealing was in line with our regulatory requirements and was taken in the best interests of all investors. The Funds’ Standing Independent Valuers told us it was not possible to provide accurate and reliable valuations for certain property assets held in the Funds and we were therefore unable to produce a price for the Funds which reflected the assets’ true market value.

As markets stabilised, the Funds’ Standing Independent Valuers removed the material valuation uncertainty clauses from all properties held by the Funds at the end of September. The investment team have been building up the Funds’ cash positions throughout the suspension period and further property sales are being pursued in order to maintain this once the suspension is lifted.

The property market remains challenging, given the uncertain impact on the economy of COVID-19, particularly regarding the ability to buy and sell property assets as well as other factors such as investor sentiment and market liquidity. However, we have now decided that the suspension should be lifted and allow dealing to resume on 16 November 2020.

We will continue to monitor the Funds and the market in the lead up to the planned lifting of the suspension. Should anything materially change, we will issue further communication. We would like to thank you for your patience and understanding throughout this turbulent time.


Date:
19/10/20

GREF:

Temporary suspension of the ASI Global Real Estate Fund continues

As Authorised Fund Manager for the ASI Global Real Estate Fund, we are required to formally review the suspension with the Trustee and Depositary at least every 28 days.

The fund’s Standing Independent Valuer continue to cite material valuation uncertainty at 19 October 2020, therefore we are still unable to produce a price for the fund which we can say with any confidence reflects the true market value of the assets. The decision was therefore made to continue with the temporary suspension of the fund in order to best protect investors’ interests.

The fund continues to be actively managed throughout the suspension, with a key focus being the protection of income given the prevailing market environment. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
17/09/20

PAIFS:

Temporary suspension of ASI Property Funds continues

Following the recommendation to remove material valuation uncertainty by the RICS Material Valuation Uncertainty Leaders Forum on the 9th September, the Funds’ Standing Independent Valuers have informed us that the material valuation uncertainty clauses will be removed from all properties held by the Funds in the valuation reports issued at the end of September.

As Authorised Fund Manager for the Aberdeen UK Property Fund and the SLI UK Real Estate Fund (and their respective feeder funds), we have reviewed the suspension with the Depositary in light of this news. As part of this review, we are required to take a number of additional factors into consideration when making any decisions around the suspension. These factors include the liquidity levels (current and forecast) within the Funds, together with forecast fund flows and asset or market liquidity.

Further to this review, the decision was made to continue with the suspension of these Funds in order to best protect investors’ interests. Whilst the Funds have managed to raise liquidity levels throughout the period of the suspension, it has been agreed with the Depositary that the Funds should remain temporarily suspended in order to allow the teams sufficient time to progress further sales.

The Funds continues to be actively managed throughout the suspension, with a key focus being the protection of income given the prevailing market environment. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
17/09/20

GREF:

Temporary suspension of the ASI Global Real Estate Fund continues

As Authorised Fund Manager for the ASI Global Real Estate Fund, we are required to formally review the suspension with the Trustee and Depositary at least every 28 days.

The Fund’s Standing Independent Valuer continues to cite material valuation uncertainty over a significant proportion of the portfolio at 16 September 2020, therefore we are still unable to produce a price for the Fund which we can say with any confidence reflects the true market value of the assets. The decision was therefore made to continue with the temporary suspension of the Fund in order to best protect investors’ interests.

It is important to understand that should material valuation uncertainty of the scheme assets of the Fund be reduced to below the 20% threshold, as defined in the FCAs Policy Statement PS19/24, it is a re-evaluation point for the temporary suspension rather than an immediate removal of the suspension itself. We are required to take a number of factors into consideration when making any decisions around the course of action with regards to the suspension. These factors include, but are not limited to, the liquidity levels within the Fund, investor sentiment, forecasts around investor liquidity requirements in addition to asset or market liquidity and all investors’ best interests.

The Fund continues to be actively managed throughout the suspension, with a key focus being the protection of income given the prevailing market environment. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
24/08/20

PAIFS:

Temporary suspension continues

As Authorised Fund Manager for the Aberdeen UK Property Fund and the SLI UK Real Estate Fund (and their respective feeder funds), we are required to formally review the suspension with the Depositary at least every 28 days.

The fund’s Standing Independent Valuers continue to cite material valuation uncertainty at 19 August 2020, therefore we are still unable to produce a price for the funds which we can say with any confidence reflects the true market value of the assets. The decision was therefore made to continue with the temporary suspension of these funds in order to best protect investors’ interests.

The funds continue to be actively managed throughout the suspension, with a key focus being the protection of income given the prevailing market environment. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
24/08/20

GREF:

Temporary suspension continues

As Authorised Fund Manager for the ASI Global Real Estate Fund, we are required to formally review the suspension with the Trustee and Depositary at least every 28 days.

The fund’s Standing Independent Valuer continue to cite material valuation uncertainty at 19 August 2020, therefore we are still unable to produce a price for the fund which we can say with any confidence reflects the true market value of the assets. The decision was therefore made to continue with the temporary suspension of the fund in order to best protect investors’ interests.

The fund continues to be actively managed throughout the suspension, with a key focus being the protection of income given the prevailing market environment. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
27/07/20

PAIFS:

Temporary suspension continues

As Authorised Fund Manager for the Aberdeen UK Property Fund and the SLI UK Real Estate Fund (and their respective feeder funds), we are required to formally review the suspension with the Depositary at least every 28 days.

The fund’s Standing Independent Valuers continue to cite material valuation uncertainty at 22 July 2020, therefore we are still unable to produce a price for the funds which we can say with any confidence reflects the true market value of the assets. The decision was therefore made to continue with the temporary suspension of these funds in order to best protect investors’ interests.

The funds continue to be actively managed throughout the suspension, with a key focus being the protection of income given the prevailing market environment. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
27/07/20

GREF:

Temporary suspension continues

As Authorised Fund Manager for the ASI Global Real Estate Fund, we are required to formally review the suspension with the Trustee and Depositary at least every 28 days.

The fund’s Standing Independent Valuer continue to cite material valuation uncertainty at 22 July 2020, therefore we are still unable to produce a price for the fund which we can say with any confidence reflects the true market value of the assets. The decision was therefore made to continue with the temporary suspension of the fund in order to best protect investors’ interests.

The fund continues to be actively managed throughout the suspension, with a key focus being the protection of income given the prevailing market environment. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
01/07/20

Aberdeen UK Property Fund and the SLI UK Real Estate Fund - temporary suspension continues

As Authorised Fund Manager for the Aberdeen UK Property Fund and the SLI UK Real Estate Fund (and their respective feeder funds), we are required to formally review the suspension with the Depositary at least every 28 days.

The fund’s Standing Independent Valuers continue to cite material valuation uncertainty at 1 July 2020, therefore we are still unable to produce a price for the funds which we can say with any confidence reflects the true market value of the assets. The decision was therefore made to continue with the temporary suspension of these funds in order to best protect investors’ interests.

The funds continue to be actively managed throughout the suspension, with a key focus being the protection of income given the prevailing market environment. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
01/07/20

ASI Global Real Estate Fund - temporary suspension continues

As Authorised Fund Manager for the ASI Global Real Estate Fund, we are required to formally review the suspension with the Trustee and Depositary at least every 28 days.

The fund’s Standing Independent Valuer continue to cite material valuation uncertainty at 1 July 2020, therefore we are still unable to produce a price for the fund which we can say with any confidence reflects the true market value of the assets. The decision was therefore made to continue with the temporary suspension of the fund in order to best protect investors’ interests.

The fund continues to be actively managed throughout the suspension, with a key focus being the protection of income given the prevailing market environment. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
03/06/20

Aberdeen UK Property Fund and the SLI UK Real Estate Fund - temporary suspension continues

As Authorised Fund Manager for the Aberdeen UK Property Fund and the SLI UK Real Estate Fund (and their respective feeder funds), we are required to formally review the suspension with the Depositary at least every 28 days.

The fund’s Standing Independent Valuers continue to cite material valuation uncertainty at 3 June 2020, therefore we are still unable to produce a price for the funds which we can say with any confidence reflects the true market value of the assets. The decision was therefore made to continue with the temporary suspension of these funds in order to best protect investors’ interests.

The funds continue to be actively managed throughout the suspension, with a key focus being the protection of income given the prevailing market environment. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
03/06/20

ASI Global Real Estate Fund - temporary suspension continues

As Authorised Fund Manager for the ASI Global Real Estate Fund, we are required to formally review the suspension with the Trustee and Depositary at least every 28 days.

The fund’s Standing Independent Valuer continue to cite material valuation uncertainty at 3 June 2020, therefore we are still unable to produce a price for the fund which we can say with any confidence reflects the true market value of the assets. The decision was therefore made to continue with the temporary suspension of the fund in order to best protect investors’ interests.

The fund continues to be actively managed throughout the suspension, with a key focus being the protection of income given the prevailing market environment. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
12/05/20

Aberdeen UK Property Fund and the SLI UK Real Estate Fund - temporary suspension continues

As Authorised Fund Manager for the Aberdeen UK Property Fund and the SLI UK Real Estate Fund (and their respective feeder funds), we are required to formally review the suspension with the Depositary at least every 28 days.

The fund’s Standing Independent Valuers continue to cite material valuation uncertainty at 12 May 2020, therefore we are still unable to produce a price for the funds which we can say with any confidence reflects the true market value of the assets. The decision was therefore made to continue with the temporary suspension of these funds in order to best protect investors’ interests.

The funds continue to be actively managed throughout the suspension, with a key focus being the protection of income given the prevailing market environment. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
14/04/20

Aberdeen UK Property Fund and the SLI UK Real Estate Fund - temporary suspension continues

As Authorised Fund Manager for the Aberdeen UK Property Fund and the SLI UK Real Estate Fund (and their respective feeder funds), we are required to formally review the suspension with the Depositary at least every 28 days.

The fund’s Standing Independent Valuers continue to cite material valuation uncertainty at 14 April 2020, therefore we are still unable to produce a price for the funds which we can say with any confidence reflects the true market value of the assets. The decision was therefore made to continue with the temporary suspension of these funds in order to best protect investors’ interests.

The funds continue to be actively managed throughout the suspension, with a key focus being the protection of income given the prevailing market environment. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
14/04/20

ASI Global Real Estate Fund: temporary suspension continues

As Authorised Fund Manager for the ASI Global Real Estate Fund, we are required to formally review the suspension with the Trustee and Depositary at least every 28 days.

The fund’s Standing Independent Valuer continue to cite material valuation uncertainty at 14 April 2020, therefore we are still unable to produce a price for the fund which we can say with any confidence reflects the true market value of the assets. The decision was therefore made to continue with the temporary suspension of the fund in order to best protect investors’ interests.

The fund continues to be actively managed throughout the suspension, with a key focus being the protection of income given the prevailing market environment. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
18/03/20

Markets around the world have experienced huge disruption as COVID-19 spreads and trading in the UK property market is being severely impacted. As a result the funds’ Standing Independent Valuers have informed us it is not currently possible to provide accurate and reliable valuations for certain assets, including the properties held in the Funds. We are therefore unable to produce a price for the Funds which we can say with any confidence reflects the true value of the assets.

Therefore in order to protect the interests of investors, we have suspended dealing in the following funds:

  • Aberdeen UK Property Fund and Aberdeen UK Property Feeder Unit Trust
  • Standard Life Investments UK Real Estate Fund, Standard Life Investments UK Real Estate Accumulation Feeder Fund and Standard Life Investments UK Real Estate Income Feeder

This action reflects the exceptional circumstances in the UK property market and the need to protect client interests by suspending trading when there is material uncertainty regarding how the assets should be valued. We will aim to lift the suspension as soon as confidence returns to the market and there is more certainty regarding asset valuations, taking into account the best interests of customers and investors. We will continue to keep you updated and thank you for your patience and understanding in these difficult times.


Date:
18/03/20

ASI Global Real Estate Fund - update

Further to the suspension of the UK Property Funds, the Standing Independent Valuer for the Global Real Estate fund has informed us that there is material uncertainty over certain valuations of the fund’s physical assets. Currently this specifically applies to the Fund’s European assets but this remains a rapidly evolving situation.

Therefore to protect the interests of investors, we have additionally suspended dealing in the ASI Global Real Estate Fund.

For a full list of ISINs click here

Warning
Risk warning - Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results.