ABERDEEN LIFTS SUSPENSION ON PROPERTY FUND ALLOWING CLIENTS TO TRADE

- Group

As planned, Aberdeen Fund Managers Limited (“Aberdeen”) has today lifted the trading suspension on the Aberdeen UK Property Fund and the Aberdeen UK Property Feeder Unit Trust (together “the Funds”). The suspension was put in place to allow those who placed orders by reference to the 6 July valuation point, to reassess those trades and cancel them if they wished having been informed of the anti-dilutive measure put in place.


Any uncancelled orders for subscriptions and redemptions in the Funds placed between 12 noon on 5 July and 12 noon on 6 July 2016 will now be processed at the diluted price as at noon 13 July 2016.


With the suspension removed, investors are now able to submit trades after 12 noon on 13 July 2016 but at a diluted price that reflects the current market environment and the fact that short-term sales in the property market have relatively penal consequences. Any orders placed during the suspension period will have been rejected and new trades will now need to be re-submitted after 12 noon on 13 July 2016. However, investors will not have the opportunity to cancel trades in the event of any future changes to the Fair value and Dilution adjustments as they did during the suspension period.


It is important to note that the anti-dilutive measures we have put in place have been imposed solely to reflect the need to dispose of properties in order to provide liquidity. Doing so allows us to protect value for longer-term investors and, although today’s price also incorporates a fair value adjustment of 7% on property holdings, the diluted price is quite distinct from that and not a reflection of what we believe is currently achievable in the absence of undue pressure to sell properties. Accordingly, if future trading in the Fund reverts to lower levels, we would expect to lower or remove the dilution adjustment, and the price would then revert to a level reflective of longer-term property values.


We recognise that the temporary suspension since 6 July 2016 and the anti-dilutive measures we have taken will have inconvenienced some shareholders, but Aberdeen remains absolutely focused on providing liquidity to shareholders who wish to access it, while protecting value for the remaining shareholders; our aim is to ensure all shareholders are treated fairly. Shareholders can find any additional information on our website at www.aberdeen-asset.co.uk
The decision to lift the suspension period was taken by Aberdeen in agreement with the Depositary.