Thursday, January 31, 2008
UK faces fund withdrawal freeze amid investor panic
WITH the value of commercial real estate falling in Britain, the investor rush on property funds is likely to intensify, forcing more funds to freeze withdrawals.
The scale of some of the redemptions - running into millions of pounds - has plunged several funds into crisis by eroding the amount of cash they have available to make payments. Subsequently, withdrawals have been temporarily frozen by some funds, including those run by Scottish Widows, a unit of Lloyds TSB Group; Dutch insurer Aegon's Scottish Equitable Property Fund; and Aviva Plc's Morley Fund Management's Morley Pooled Pensions Limited Property Fund.