Tuesday, July 5, 2016

HOT Standard Life Fund Halts Withdrawals

Standard Life Investments - the mutual fund arm of a British insurance company, with large investments in London commercial real estate - has suspended requests from investors wanting to exit its U.K. Real Estate Fund.

The firm said there had been an "increase in redemption requests as a result of uncertainty for the U.K. commercial real estate market following the E.U. referendum result" and that it would end the suspension "as soon as practicable."

Standard Life had reduced the value of its commercial property investments along with other fund managers last week by 3 percent to 5 percent. Its U.K. Real Estate Fund invests in high-end commercial properties in London, which have soared in value. But the decision by a majority of British voters to leave the European Union has raised questions about London's future as a financial and commercial hub.

The fund manager said the number of investors asking to withdraw their money had increased following the vote.

"The suspension was requested to protect the interests of all investors in the fund," it said in a statement.

The last time Standard Life stopped investors taking their money out of the fund was during the financial crisis.

The £2.9bn fund invests in a mixture of commercial real estate in the UK, including office blocks, shopping centers, and warehouses.


(Via NYT, BBC)

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