Aviva Investors shuts property fund over liquidity
Aviva says conditions are ‘challenging’
Aviva Investors is shutting its £366 million UK Property fund a year after it suspended dealing, saying there is not enough liquidity to reopen it.
The fund closed in March last year as the coronavirus pandemic forced a wave of property fund suspensions due to material uncertainty over the valuations within their portfolios.
Many of these mandates have reopened after adjustments to their portfolios allowed for redemptions.
Aviva Investors said that it also suspending its two feeder funds, as it has become increasingly challenging to generate positive returns while also providing the necessary liquidity to re-open them.
The asset manager had placed the three funds under review in its value assessment review, published in January, to ensure ‘investors’ long-term interests could continue to be served’.