The property market has endured a difficult period recently and this has had an effect on our funds. We aim to ensure that all investors in our funds are treated fairly and are currently deferring certain withdrawals from any of the AEGON Scottish Equitable funds with investments in property.
Withdrawals not affected by this are:
- payments relating to regular income already being paid (from Investment Bond, Trustee Investment and phased retirement / income drawdown plans)
- retirements at the normal or selected retirement date
- death claims
- court directed pension sharing orders
The deferment means that if you are invested in any of the funds below, you won’t be able to switch from, surrender (cash in) or transfer out of them for a period of time. The length of the delay will depend on your policy conditions but it will not be longer than 12 months.
The funds affected are:
- Property (life and pensions)
- Select Distribution (life and pensions)
- Select Reserve (life and pensions)
This does not affect funds in our Fund Supermarket.
Who does this affect?
This will only affect you if you request a switch, surrender or transfer out of the property fund. It will also apply to requests for pension fund transfers to self-invest or transfer to a different pension. Any requests that we received before midnight on Wednesday 16 January are not affected.
Why is this happening?
The UK commercial property market has endured a difficult period since last summer, with a marked change in sentiment from positive to negative. This has resulted in property funds experiencing a higher number of sellers than buyers. The level of withdrawals from our property funds has reached the stage where we now have to sell properties to raise cash to meet the requests for payments out.
Commercial property is not a liquid investment and it can take several months to complete a sale. We’ve taken the decision to defer certain payments to ensure fair treatment of all investors in the fund. This means managing the fund to the benefit of long-term investors and enabling those wishing to exit to do so at a reasonable price. Certain payments out have been deferred to allow time to sell selected properties at a reasonable price. It’s of no benefit either to those exiting or to investors in the fund if the manager sells too quickly.
For more information here are some frequently asked questions
