NU closes commercial property fund for withdrawals
Investors in Norwich Union’s (NU) unit-linked life and pensions’ property fund may not be able to redeem their cash for up to six months.
The insurer is limiting withdrawals, although savers whose policies are due to mature during the period and those who receive regular payments from the fund are not affected, along with anyone who makes an insurance-linked claim or a claim relating to the death of a policyholder.
However, requests for surrenders (whether whole or partial), switches, transfers and new requests for automatic partial withdrawals will not receive attention for up to six months.
The £2.9 billion fund, which invests primarily in commercial property, has around 225,000 small investors and according to NU, a lack of credit and buyers has meant that properties are taking longer to sell.
The move will give NU a longer period in which to dispose of assets and hopefully obtain an acceptable price.
Scottish Equitable, Scottish Widows and Friends Provident have taken similar action over the past year or so, as the value of commercial property plummeted and returns for investors remaining in their funds were jeopardised by the prospect of large-scale withdrawals.
Category: Aviva News, Insurance News, Norwich Union Insurance News
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