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Property fund suspensions

The global outbreak of coronavirus is impacting property funds. From 16 March 2020 the following funds have been suspended by the fund management groups:

Fund name Date and time suspended
Aberdeen UK Property Feeder Unit Trust 12 noon Tuesday 17 March
ARC TIME Social Long Income Feeder Trust 10:00 am on Wednesday 18 March
ASI Global Real Estate 12 noon Tuesday 17 March
Aviva Investors UK Property Feeder 12 noon Tuesday 17 March
BMO Property Growth & Income Feeder 12 noon Tuesday 17 March
BMO UK Property Feeder 12 noon Tuesday 17 March
Commercial Long Income Feeder Trust 10:00 am on Wednesday 18 March
Commercial Long Income PAIF 10:00 am on Wednesday 18 March
Janus Henderson UK Property PAIF Feeder    12 noon Monday 16 March
Kames Property Income Feeder 12 noon Monday 16 March
L+G UK Property Feeder 12 noon Tuesday 17 March
M+G Feeder of Property Portfolio* Wednesday 4 December 2019
Standard Life UK Real Estate Income Feeder 12 noon Tuesday 17 March
Threadneedle UK Property Authorised Trust (Feeder) 12 noon Tuesday 17 March

 

*The M&G Feeder of Property Portfolio fund was suspended in December 2019 for different reasons, find out more here.

Why is this happening?

The reason for the suspensions is that, due to the impact of coronavirus, the appointed independent valuers of the funds have material uncertainty around the valuation of UK properties across the market, and therefore certain assets held within the funds.

The decisions are consistent with the new rules issued by the Financial Conduct Authority (FCA), under which a fund must suspend dealing if a valuation is materially uncertain for 20% or more of the assets held in the fund. The suspension has been implemented to safeguard the interests of all investors. A period of suspension will give the valuers time to better understand the impact that coronavirus crisis is having on direct property market valuations.

These suspensions differ from those in 2016, where the driver was a lack of liquidity (cash) being held within some property funds to meet client redemption requests.

What does it mean for investors?

At the moment, the suspended funds will continue to show an indicative price, and the value of your clients’ remaining units will be included in the overall value of their investments you will see online and in statements. As it is not possible to buy or sell units in a suspended fund, your clients will be unable to top-up (regular or adhoc), switch or make new withdrawals out of the funds.

What happens next?

The fund suspensions will remain in place until we are notified that the suspension instructions have been lifted, see below.

We wrioe to your clients in each fund to notify them of the suspensions, pointing them at our website Q&A and to you for further support and we will write again when the suspensions are lifted. 

Please refer to our user guides for more information on identifying your clients in the affected funds:

The Questions and Answers below also provide details of what you can and can’t do if you are invested in the fund.

View our Q&A’s for investments in our Platform products.

View our Q&As for investments in our new platform technology products.

When will funds lift the suspensions?

Following an announcement on 08 September 2020 that a forum of property valuers organised by the Royal Institution of Chartered Surveyors has reached a consensus that warnings about valuation uncertainty are no longer needed for almost all U.K. commercial property, the following fund managers have therefore decided the suspension of dealing in the fund’s shares can be lifted.

Fund name Date suspension lifted
BMO Property Growth & Income Feeder 16 June 2020
L+G UK Property Feeder 13 October 2020
Threadneedle UK Property Authorised Trust (Feeder) 17 September 2020

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