Aegon Asset Management will not re-open the Aegon Property Income Fund which has been closed to redemptions since 16 March 2020.
The fund manager said it had hoped to reopen the UK fund and its feeder funds, which have a portfolio last valued at £381 mln, in Q2 this year.
However, a statement said: ‘It has proved increasingly challenging to raise sufficient liquidity whilst also ensuring that continuing investors have a representative and well-balanced portfolio.
‘Accordingly, in order to ensure all investors are treated fairly, Aegon AM has decided to take steps to close the funds and return the proceeds to investors as quickly as possible, in a fair and orderly manner.’
The manager said all 40 properties in the fund will be sold and payments made to investors as sales complete.
Aegon AM’s decision follows a similar capitulation last month by Aviva Investors which announced the closure of its UK open-ended fund.
Aviva told investors it had become too challenging to generate positive returns and maintain sufficient liquidity to re-open and meet redemptions.
The UK’s Financial Conduct Authority has been consulting on whether in future investors in open-ended property funds who want to redeem could be obliged to wait 180 days.
The Aegon fund is 64% weighted to regional offices according to its latest fact sheet (31 May 2021). Its largest assets by value include: The Hive in Manchester; 2 City Walk in Leeds; Central Court in Orpington; Fountain Precinct in Sheffield; and The Martletts in Crawley.
