Legal & General Investment Management has removed the fair value pricing adjustment on its £2.3bn UK Property fund, as it believes the real estate market has stabilised since June's Brexit vote.
The fund will now be valued using the pre-referendum independent valuation methodology, as at the valuation point on 7 September. The company said removing the adjustment will result in a difference of +1.93% at fund level. The fair value pricing has also been removed on all other L&G property funds. LGIM first implemented a 10% downward 'fair value adjustment' on the fund in June, adding to a 5% initial adjustment in the immediate aftermath of the Brexit vote, bringing the total downward move to 15%. In July, the company subsequently reduced the fair value adjustment from -15% to ...
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