The Aegon Property Income and feeder funds will close on 9 August 2021, with investors set to receive at least 40% of the funds’ value on or around 12 August.
According to an investor Q&A, it will take 12 to 24 months to liquidate the portfolio in its entirety, and investors can expect to receive further payments to the initial 40% on "at least a quarterly basis".
Aegon Asset Management will continue to receive a reduced annual management charge of 0.6% throughout the closure period and will facilitate cash payments through a reduction in the number of units rather than a reduction of the net asset value (NAV) of the fund.
As of 30 June 2021, the fund had reached a net current assets level of 43.4%, with the remaining 56.6% of direct property assets spread across 34 properties.
During June, six properties were sold, raising the liquidity from 31.6% to 43.4% of the now £381m fund, with one further asset having since completed and nine due to exchange in July.
Aegon Property Income was the last fund to announce the end to its suspension, on 23 June 2021, with the Aviva Investors UK Property fund the only other to end in closure, which it announced on 19 May.
Yesterday (19 July), the fund was placed into termination, with investors set to receive an initial payment of approximately 40% of the total NAV "in late July 2021".
Unlike Aegon, Aviva has not said it will pay investors on a quarterly basis, only offering guidance that "the manager will consider the amount of cash held by the funds and decide whether a further payment should be made to investors".
As of 30 June, the £367m fund has raised 41.3% cash and held just 11 remaining assets.
Investors who did not submit instructions to the manager will have their distributions automatically invested in Aviva Investors Multi-asset Core Fund I, which aims to provide an overall average return before charges and taxes of 0.3% greater than its performance benchmark, over a three-year rolling period.
The multi-asset fund tracks a composite index, comprised of 20% MSCI All Countries World index and 80% Bloomberg Barclays Global Aggregate Bond Index Hedged GBP.