UK Property Funds Halt Redemptions Post-Brexit

(RTTNews) - Aviva Investors, the fund management arm of insurance giant Aviva, has brought a temporary suspension on all dealings in its U.K. Property Trust, due to the negative impact caused by Britain's vote to exit the European Union.

Aviva Investors becomes the second big insurer to suspend a fund after Standard Life Investments, the fund arm of insurer Standard Life, suspended its £2.9 billion UK real estate fund a day earlier.

"The decision has been made to safeguard the interests of existing investors, and with agreement from the depositary and trustee of the Fund, Citibank Europe plc, UK Branch," Aviva said in a statement.

The fund management said that over recent months it has been experiencing higher volumes of requests from investors to pull out more money from its £1.8 billion Aviva Investors Property Trust reflecting the "challenging market circumstances, in light of investor sentiment regarding the EU referendum."

"Suspension of dealing means that we cannot accept instructions to buy, sell, transfer or switch units in the Trust until further notice."

Earlier, Standard Life Investments had also suspended trading in its £2.9 billion UK property fund citing similar reason of "exceptional market circumstances" due to EU referendum. The fund manager also experienced abnormal number requests from investors asking to withdraw their money after the vote.