Scottish Equitable M&G Property Portfolio re-opens to redemptions (payments out)

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On Friday 4 November 2016, M&G resumed trading in the M&G property Portfolio, the underlying fund of the Scottish Equitable M&G property Portfolio and Scottish Equitable M&G Property Portfolio (ARC).

As a result, at 12:00pm on Friday 4 November, we resumed trading in both the Scottish Equitable M&G Property Portfolio and Scottish Equitable M&G Property Portfolio (ARC).

This means that investors in these funds can now make payments into and out of the funds as before.

Why did the fund suspend trading?

Please see our previous update regarding this here.

Why has the fund resumed trading?

The UK commercial property market has recently shown signs of stabilising. The fund managers have also sold a number of properties raising cash levels within the portfolio, enabling the fund to resume trading.

What this means for investors

The funds have re-opened which means investors can now make payments into and out of the Scottish Equitable M&G Property Portfolio and Scottish Equitable M&G Property Portfolio (ARC).

Any requests for redemptions from the funds made after 4 November 2016 will be fulfilled. This means you can now switch in or out of the funds or cash in your investment in them.

Regular payments

If you make regular payments into the Scottish Equitable M&G Property Portfolio pension fund, these will continue as normal now that the fund has resumed trading.

Investors accessing the fund via Aegon Retirement Choices (ARC) will have had regular payments directed to the cash facility when the fund was suspended, unless they instructed us to do otherwise. You will need to instruct us to redirect regular payments into the Scottish Equitable M&G Property Portfolio (ARC) fund if you wish to resume these payments. You or your adviser can do this by accessing your online account.

Investors who currently receive an income

Income should have continued at the same level as before where possible. However, this will have been taken from across the other funds held in your plan and not from any portion invested in the Scottish Equitable M&G Property Portfolio or Scottish Equitable M&G Property Portfolio (ARC).

Please contact us if you want to resume drawing income from this fund.

Model portfolios

Where the Scottish Equitable M&G Property Portfolio (ARC) fund was used in a model portfolio via ARC, any allocation was removed during the fund suspension and reassigned to cash.

This will continue with any existing holdings in the M&G fund being sold down at the next rebalancing point unless we receive alternative instructions.

We recommend that financial advisers and discretionary fund managers review their affected model portfolios as soon as possible.

Where can I find more information?

If you’d like more information, please speak to your financial adviser. If you don’t have a financial adviser, you can find one in your area by going to www.unbiased.co.uk.

You can also view our property fund Q&A here.

The value of investments may go down as well as up. Investors may receive less than originally invested.