Standard Life Investments has become the latest UK asset manager to restrict withdrawals from unit-linked real estate funds to maintain liquidity and prevent forced asset sales in a falling market.
Standard Life Investments has become the latest UK asset manager to restrict withdrawals from unit-linked real estate funds to maintain liquidity and prevent forced asset sales in a falling market.
Edinburgh-based Standard Life announced on Tuesday that it has had to impose a six-month rolling suspension on investors taking money out of six life and pension funds. The curb affects the Property Fund, the Property Investment Life Fund, the Pooled Property Fund, the Property One Fund, the Pension Managed Property Fund and the Individual Property One Fund.
'The continued deterioration of the UK commercial property market means we have to introduce some controls over the programme of sales of properties from within certain funds,' Standard Life said.
Standard Life noted it was not the first and won't be the last to limit withdrawals. Ailing asset manager New Star introduced a freeze on redemptions from its £460 mln International Property fund in November 2008, while Aviva closed its Norwich Union life and pensions property fund to withdrawals last week. Fund managers M&G, Scottish Widows and Scottish Equitable have also restricted redemptions in recent times.
Germany's open-ended property fund industry has also experienced a wave of redemption restrictions. Twelve major funds, with total of EUR 32 bn in assets under management, froze redemptions in October 2008. Several of their funds announced an extension on the initial 90-day freeze last week, though Degi said it was lifting the suspension on its Degi International fund from the end of January.
