Aviva returns almost half of the net asset value of the shuttered real estate funds on the first payment

During this time, the company will return 45.7% of the net asset value of the inc and acc share classes of its UK Property Feeder funds.

This follows the closure of funds in May of this year, after more than a year of significant uncertainty over real estate valuations. According to a spokesperson for Aviva Investors at the time, this led to an “increasingly difficult” environment in which to generate positive returns “while providing the liquidity to reopen the funds”.

Suspended property funds raise £ 40million in management fees in 2020

The payout percentage calculated by Aviva was based on the NAVs of the funds on May 19, when investors were first notified of the fund closing. Feeder fund NAV percentages are slightly lower, due to higher costs and fees when investing through feeder vehicles, which reduces the level of available liquidity.

Investors recently received a transit notice confirming the individual amount owed to them and asking for a choice between receiving the payment in cash or having it work in another Aviva Investors fund.

The default course of action for unresponsive investors who invest through the company’s investment ISA will be to place their capital in share class 1 of the Aviva Investors Multi-Asset Core fund. Investors who purchased the vehicle directly will have their proceeds refunded in cash.

It was first confirmed that clients would receive their first payment in August on July 22 of this year, when fund managers predicted a 40% return of total net asset value to investors. The first payment was based on market valuations on August 2 when the trades were placed.


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