INVESTORS in the Aviva UK property fund can now withdraw their money more than nine months after the group imposed a freeze on redemptions.
More than 200,000 savers were told in January that they faced a wait of up to six months before being able to surrender or transfer their investments after the cash level in the unit-linked property fund dropped from 7 per cent to 3.1 per cent. Some
12,000 investors encashed investment or transferred out while restrictions were in place.
They followed a slump in commercial property values last year which made it difficult to sell properties to cover redemptions. Aegon, Standard Life and Scottish Widows funds also locked in investors but have since eased or lifted restrictions. Trading in New Star International Property fund – now Henderson International Property fund – is still suspended.
Aviva said the cash level of the £2.6 billion fund had recovered to 12 per cent following signs of stability in commercial property. The Investment Property Databank index rose in August and September after almost two years of negative returns.
David Barral, Aviva marketing director, said:
"We understand restricting withdrawals was inconvenient for some but this was in the interests of the majority."
