LONDON: Asset manager Kames Capital said it has reduced the fair value adjustment made to its UK property funds as market sentiment in the wake of Britain’s vote to leave the European Union begins to improve.
The firm, part of Dutch insurer Aegon, said it had cut the adjustment on its Kames Property Income and Kames Property Income Feeder funds to 8.5% from 10 percent on Aug. 16.
“A fair-value pricing adjustment continues to be applied to the direct property portfolio in the expectation of further pricing falls, however property values to date have not fallen as much as initially expected,” it said in the statement.
“At the same time, the market has benefited from a general improvement in sentiment,” it said, adding it had seen new money enter the funds since July 7, when it had increased the adjustment to 10 percent from an initial 5 percent.
(Editing by Maiya Keidan)
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