This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-36735436

The article has changed 3 times. There is an RSS feed of changes available.

Version 1 Version 2
L&G makes a further 10% cut in its property fund L&G adds to pain for UK property fund investors
(about 1 hour 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. Confidence in the UK property sector took a further pounding on Thursday after Legal & General made a deeper cut in the value of its property fund.
At least seven property funds have suspended trading following the UK's vote to leave the European Union. Meanwhile, Aberdeen Asset Management extended a suspension of its fund.
Aberdeen Asset Management extended a suspension of its fund to July 11 on Thursday after announcing a 17% cut to its value. The latest moves add to a flurry of suspensions this week as fund managers seek to prevent a stampede to the exit following the vote to leave the EU.
Investors are worried that a move to leave the European Union will send commercial property prices tumbling.
L&G has cut its £2.3bn ($2.99bn) UK property fund by a further 10%, following a previous 5% valuation cut.
Including Aberdeen, 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 11 July on Thursday after announcing a 17% cut to its value.
It initially said on Wednesday it would pause the fund for 24 hours.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.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, which have all restricted access to their funds this week.
'Discounts' 'Significant 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, said the manager of one suspended fund.
"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.
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.