Aegon Scottish Equitable has defended its decision to suspend certain payments from its £2bn commercial property funds, arguing it has to be fair to the funds' long-term investors.
Market commentators also say the decision is “proportionate” with the current market direction and “should not come as a surprise”. The firm announced this morning it is suspending withdrawals for up to 12 months on its Property fund, Select Reserve fund and Select Distribution fund. It says the UK commercial property market has seen considerable negative sentiment since summer 2007 - causing liquidity problems for the funds – adding the deferrals will not affect payments already being made, retirements, death claims, or court directed pension sharing orders. Aegon says withdrawals fr...
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