Aegon shuts property funds over liquidity squeeze
Aegon had hoped to reopen the funds (pic: Terry Murden)
Aegon Asset Management is to close its Property Income fund and feeder funds permanently after being unable to raise the required liquidity to meet redemption requests.
The £381m fund was suspended last March along with all the major UK property funds after the Covid crisis made it difficult to determine the value of their underlying holdings.
The asset manager said that in order to “ensure all investors are treated fairly” it is now taking steps to close the vehicles.
Earlier in June, Aegon Property Income fund had built up a cash level of 31.6%.
It had hoped that the fund could reopen in the second quarter of this year, however Aegon 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.”
Last month Aviva Investors announced it was closing its fund after failing to attract sufficient liquidity.