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Norwich Union temporarily defers settlements

On Unit-Linked Property Fund

UK-based Norwich Union has temporarily deferred settlements on its Unit-Linked Property Fund which invests in the UK commercial property.

According to the company, deferral is a temporary measure to protect all investors in the fund, as trading conditions in the commercial property market have tightened over the past 12 months. It means that requests to redeem are held on file and executed up to six months later. This gives the fund a longer period to sell the properties it holds at an acceptable price.

While the deferral period is in place, transactions including surrenders, switches, partial surrenders, transfers and new requests for automatic partial withdrawals will be deferred for up to a maximum of six months. However, there are a number of circumstances where eligible customers will still be able to instruct redemptions as usual or where the deferral period will not apply.

David Barral, marketing director at Norwich Union, said: We recognise that this will be disappointing for some investors who may want immediate access to their capital. However, this action is in the best interests of investors by protecting the long-term value of their investment and avoiding having to sell properties below their market value.