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| L&G makes a further 10% cut in its property fund | L&G makes a further 10% cut in its property fund |
| (about 2 hours later) | |
| Legal & General has cut the value of its £2.3bn ($2.99bn) UK property fund by a further 10%, following a previous 5% valuation reduction. | Legal & General has cut the value of its £2.3bn ($2.99bn) UK property fund by a further 10%, following a previous 5% valuation reduction. |
| At least seven property funds have suspended trading following the UK's vote to leave the European Union. | |
| Aberdeen Asset Management extended a suspension of its fund to July 11 on Thursday after announcing a 17% cut to its value. | |
| It initially said on Wednesday it would pause the fund for 24 hours. | |
| Henderson, Canada Life and Threadneedle became the latest on Wednesday to close their doors to traders looking to sell. | |
| That followed similar moves by M&G, Aviva and Standard Life, who have all restricted access to their funds this week. | That followed similar moves by M&G, Aviva and Standard Life, who have all restricted access to their funds this week. |
| 'Discounts' | 'Discounts' |
| The large number of investors trying to sell their holdings in the funds is putting pressure on the fund managers to sell properties they own at sharp discounts, one fund manager said. | The large number of investors trying to sell their holdings in the funds is putting pressure on the fund managers to sell properties they own at sharp discounts, one fund manager said. |
| "Sellers requiring liquidity are having to market properties at sometimes significant discounts to their recent valuations," said Martin Gilbert, chief executive at Aberdeen Asset Management. | "Sellers requiring liquidity are having to market properties at sometimes significant discounts to their recent valuations," said Martin Gilbert, chief executive at Aberdeen Asset Management. |
| Fund managers are trying to staunch a sharp flood of redemptions away from the funds. | Fund managers are trying to staunch a sharp flood of redemptions away from the funds. |
| The vote to leave the EU has led investors to worry that there may be significant falls in commercial property, while the impact on house prices is also being closely watched. | The vote to leave the EU has led investors to worry that there may be significant falls in commercial property, while the impact on house prices is also being closely watched. |
| "At this time, it is still difficult to predict the exact impact of the vote to leave and subsequent market events on commercial property values," Legal & General Investment Management said in a statement. | "At this time, it is still difficult to predict the exact impact of the vote to leave and subsequent market events on commercial property values," Legal & General Investment Management said in a statement. |