Due to ongoing uncertainty around the pricing of commercial property assets following the vote to leave the EU, and the recent rise in requests to withdraw (or switch) from property funds, some property fund managers have taken the decision to defer withdrawals or to reduce the price of their funds for customers wishing to make withdrawals.
Selling commercial property can take time and the fund manager must carefully control the process in the best interest of the investors.
Which funds are affected?
MetLife Benchmark Aviva Investors Property
MetLife Benchmark SWIP Property Trust*
Reduction of unit price for withdrawals. The level of reduction may change on a daily basis.
*This has recently been renamed and is now called the MetLife Benchmark Aberdeen Property Trust
How does this affect my policy?
Policy investments in these funds will continue to perform in line with the performance of the property fund held. If you wish to switch funds or cash in all or part of your investment in a property fund that is suspended, we will pass your instruction to the fund manager and they will hold the request until such time that the request can be processed. This will normally be when the fund manager has sufficient certainty of the value of property assets and enough cash in the fund to meet the demand for withdrawals.
Where the fund is applying a reduction to the unit price, we will contact you about the level of reduction before proceeding with your request.
If my fund is suspended will this affect my regular withdrawals from my policy?
Yes regular withdrawals will also be affected. If you wish to maintain the current level of withdrawals it may be possible to pick up any shortfall from your other fund choices.
If my fund is suspended when will I be able to get my money out of the fund?
In three months’ time or sooner if there is sufficient certainty of value of property assets and cash within the fund to meet requests.
Am I going to lose my money if I can’t take it out?
You might lose some of the value - the nature of unit-linked investments means that your investment can fall as well as rise in value and you may not get back the full amount you invested.
What unit price will I get when I can cash my policy in/switch from the property funds?
The price you receive will be that of the units on the day the actual encashment takes place, which could be different to the price on the date of the request.
What affect will delaying withdrawals have on the property funds?
The funds will continue to be managed and any deferral will give the fund managers the time they need to carefully control the process of selling properties and to maximise the value achieved. The objective is to treat all investors equally, i.e. those wishing to say invested and those wishing to leave.
Will this affect death claims?
Death claims will be considered on a case by case basis to ensure customers are treated fairly.
Can I cancel my request to withdraw funds?
We will pass on your request to the property fund manager.
Can I make new investments into the fund?
Although the underlying fund may accept new investments these cannot be made via your Alico policy.
Are any other funds affected?
The MetLife Managed Portfolio Funds invest in a diverse range of underlying assets, including commercial property. There are no withdrawal restrictions or price reductions for these funds.
Alico Wealth Management is a trading style of MetLife Europe d.a.c.
MetLife Europe d.a.c. is a private company limited by shares and is registered in Ireland under company number 415123. Registered office at 20 on Hatch, Lower Hatch Street, Dublin 2, Ireland. UK branch office at One Canada Square, Canary Wharf, London E14 5AA. Branch registration number: BR008866.MetLife Europe d.a.c. (trading as MetLife) is authorised by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Details about the extent of our regulation by the FCA and PRA are available from us on request. Calls may be monitored and / or recorded to maintain and improve the quality of our service.