Aegon to shut Property Income fund portfolio-adviser.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from portfolio-adviser.com Daily Mail and Mail on Sunday newspapers.
A strategic review of the fund, as well as Aviva Investors redemption request assumptions, concluded that its ability to fully benefit from the economies of scale and the diversification of investments that collective investment schemes normally bring would soon be limited . Size is particularly important for funds that invest in property directly because the costs involved in acquiring, managing and disposing of properties are usually much higher than the costs associated with other asset types, Aviva told investors. As such we have concluded that it would now be in investors interests to wind-up the funds and return cash to investors in a fair and orderly manner.
The Royal Institution of Chartered Surveyors began to remove some property sectors from its recommendation of material valuation uncertainty in May 2020, before calling for a general lifting on 9 September.
The same day, St James s Place reopened all its property funds for redemptions and creations, and was followed by Columbia Threadneedle on 17 September, Royal London Asset Management on 30 September, Legal & General Investment Management on 13 October, Aberdeen Standard Investments on 16 November and BMO Global Asset Management on 14 December.
Janus Henderson Investments reopened its fund on 24 February 2021 while M&G announced it would lift the shutters on 10 May.
To date, the property funds of Aegon and Aviva both remain suspended, with respective cash levels of 22.7% and 23%, according to the most recent factsheets.