Scottish Widows is re-opening two property funds to new money by the end of April, but with restrictions on the amounts they will accept.
The Edinburgh-based company closed its unit-linked Life and Pension Property Funds in April 2003 after too many investors switched their money to property. This led to unexpectedly high levels of cash flow into the funds. As a result, the lender was forced to close the funds to new money, to prevent "inappropriate" property investments and reduce the large cash holdings. Cash levels in both funds have now dropped to about 13% - a level Scottish Widows views as more appropriate. To prevent last year's suspension happening again the firm will restrict the amount of new money into ...
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