Important note on investments in property funds

18 March 2020 suspension update

On 18 March 2020 our fund managers have been forced to suspend trading in the ReAssure property fund. This follows the decision by M&G (one of our external fund managers) to suspend trading in one of their funds on 04 December 2019.

I’m invested in one of these funds – how will this affect me and my policy?

To make sure that there is as little disruption to our customers, the following things won’t be affected:

  • Regular withdrawals that are already in place
  • Regular contributions that are already in place
  • Regular fund switching activity that’s already in place (lifestyling for example)
  • Pre-planned payments to you at a preselected date (policy maturity for example)
  • Claims on death or illness
  • Regular policy reviews

The suspension affects your ability to:

  • One-off withdrawal requests (including pension transfers)
  • Changes to regular contributions
  • Changes to regular withdrawals
  • Fund switch and redirection requests

This should only be disruptive to you if you planned to make changes to your policy while the fund is suspended. As soon as we know that the fund is free to trade again then we’ll write to you again to let you know.

If you’re interested in one of the transactions affected by the fund suspension, please call us and we can discuss options with you.

I haven’t received a letter yet, how can I be sure I’m not affected?

You can find a list of the funds you’re invested in by looking in your annual statement. A list of the affected funds is below:

M&G funds (suspended 04 December 2019):

  • AL M&G Property GQSB Life Accumulator 60
  • AL M&G Property PPB Pension Accumulator Series 60
  • AL M&G Property PPB1 Pension Accumulator Series 60
  • AL M&G Property PPBR Pension Accumulator Series 60
  • M&G Property Pension Standard Series 1

ReAssure internal property funds (from 18 Mar 2020):

  • Aberdeen Property Share
  • AL Aberdeen Property Share (inc. GQSB, GWEB, PPB, PPB1, PPBR, TGSB)
  • AL SWIP Property (inc. GQSB, GWEB Life, PPB, PPB1, PPBR, TGSB Pen)
  • Global Property
  • Property
  • SWIP Property

What about other property funds available to ReAssure customers?

Some ReAssure customers also have access to other property funds. Whilst trading in these funds continues we can’t control whether any fund manager will suspend their fund.

A general note about property funds

Whilst fund suspensions usually only happen in exceptional circumstances (such as market volatility), they are more likely to happen to funds invested in property.

As property funds are invested in physical buildings there can sometimes be a delay in valuing and selling property as quickly as customers are moving their money. This means that to make sure all investors are treated fairly, property fund trading may be stopped temporarily.

If you are concerned about being able to access your money in the short term you may want to consider another fund to invest in (once trading recommences). ReAssure can’t recommend an alternative, so if you’re not sure what to do you may want to speak with a financial adviser.

Where can I go to get help?

We recommend you get independent professional advice from a Financial Adviser if you’re unsure what to do. A Financial Adviser can make a personal recommendation based on your individual circumstances and the options available to you. If you don’t have an adviser, you can find one at www.unbiased.co.uk. You may have to pay for any advice you receive.