In response to market conditions caused by the Brexit vote, a number of fund managers have suspended trading in their respective UK Property funds. This means that certain firms are currently not accepting instructions to trade in these funds. This impacts holders of the funds through their James Hay products and may result in insufficient liquidity to pay income or charges.

Please see the below table for the current position regarding the fund ranges that have been suspended.

Some fund managers are still allowing trading in their property funds, but to take into account likely discounts in the value of fund assets in uncertain market conditions, they are now applying a “fair value adjustment” to the fund prices. This means that the price obtained on trades is reduced by a certain percentage amount.

If you have money invested in these funds or are thinking of investing, we strongly recommend you talk to a suitably qualified financial adviser.

Please see the below table for the current position regarding the fund ranges that have been suspended and/or have a “fair value adjustment” being applied to any trades.

We are communicating with clients invested in impacted funds, or their financial adviser, to provide more information and will update this page if we are notified that the funds are reopened to withdrawal requests. We also suggest that you regularly review the individual fund managers’ own websites for further updates on the position of individual funds.

Any uncertainty in the financial markets may affect the value and volatility of your underlying investments so we recommend that you consult with your financial adviser to review your investment portfolio. If you do not have a financial adviser you can find one in your area at unbiased.co.uk.

Please note that the below table only covers property funds available on our Investment Centre Platform. If property funds are held off our platform, you should contact the fund manager directly to find out the current position.

Property Fund Suspensions – position as at 9 January 2017

Fund Range Current position as advised by the fund manager Current position on James Hay’s platform
Aberdeen - UK Property Fund
  • Funds re-opened for trading on 13 July. Prices for trades may be subject to a fair value and/or dilution adjustment (the level may vary daily)
  • Please refer to their website www.aberdeen-asset.co.uk for more information
  • Trade instructions can be instructed online as normal
  • James Hay will transmit instructions to Aberdeen as normal and any pricing adjustment will be applied by Aberdeen as per their policy
Aviva Investors – Property Trust
  • Funds re-opened for trading on 15 December
  • Trade instructions can be instructed online as normal
  • James Hay will transmit such instructions to Aviva who will process as per their stated position
Aviva Pensions – Property Fund
  • The fund is still suspended with investors who wish to deal now becoming part of the queue.
  • The queue is gradually diminishing, but it could be a few more months before normal trading resumes.
  • Aviva has announced a rebate of up to 15% of the annual management charge (AMC) of the fund where investors remain invested in the fund for a 3 year period from 1 January 2017. The amount of the rebate will be calculated on the amount which remains invested at the end of the 3 years and will be on a sliding scale depending on the performance of the fund. It will be paid in the form of additional units.
  • Online trading suspended
  • Any trade instructions must be received in writing (by post, fax or secure message)
  • James Hay will transmit such instructions to Aviva who will process as per their stated position
  • With regard to the proposed potential rebate of the AMC by Aviva, James Hay will apply this on a pro rata basis to any investors who held the fund at 1 January 2017 and still hold it at the end of the 3 years, based on the lower of their holding at the beginning and end of the period.
F&C UK Property Fund
  • Funds open for trading
  • Fair value pricing adjustment was being applied but has now been removed
  • Trade instructions can be instructed online as normal
Henderson – UK Property PAIF
  • Funds re-opened for trading 14 October
  • A fair value adjustment to the direct property portfolio of 1.96% is being applied
  • Trade instructions can be instructed online as normal
Kames Property Income Fund
  • Funds open for trading
  • Fair value pricing adjustment was being applied but has now been removed
  • Large Deal Provision re-instated from 3 October to protect investors when a large deal is received
  • Trade instructions can be instructed online as normal
Legal & General UK Property Fund
  • Funds open for trading
  • Fair value pricing adjustment was being applied but has now been removed
  • Trade instructions can be instructed online as normal

M&G – Property Portfolio

  • Funds re-opened for trading from 4 November
  • Suspension is lifted
  • Trade instructions can be instructed online as normal

M&G Pooled Pension (PP) UK Property Fund

  • Funds re-opened for trading from 31 October
  • Trade instructions can be instructed online as normal
Standard Life Investments – UK Real Estate Fund (PAIF)
  • Funds re-opened for trading from 17 October
  • Trade instructions can be instructed online as normal
Scottish Widows (SWIP) Pensions Management Property Fund
  • This fund invests wholly into the Aberdeen UK Property Fund
  • It is therefore subject to the same fair value and dilution adjustments as the Aberdeen UK Property Fund (see above)
  • Trade instructions can be instructed online as normal
  • James Hay will transmit instructions to Scottish Widows as normal and any pricing adjustment will be applied by Scottish Widows per their policy
Threadneedle – UK Property PAIF
  • Funds re-opened for trading from 26 September
  • Trade instructions can be instructed online as normal