Important information for members with AVCsSeptember 23, 2016
*UPDATE 09/02/2017- This issue has now been resolved
If you are a scheme member who makes Additional Voluntary Contributions (AVCs) invested entirely, or partly, in the Prudential UK Property Fund please read the below post carefully.
Prudential have confirmed that they have deferred payments from the Prudential UK Property Fund to protect the interests of investors. The Prudential’s other funds remain unaffected.
Why have payments from the Prudential UK Property Fund been deferred?
In recent months there have been high levels of uncertainty in the markets, which have impacted the demand for commercial property. Many fund managers in the property sector have therefore acted to protect the long-term interests of investors by temporarily deferring transactions. That enables the fund manager to manage more effectively the timing of any property sales. This is important at a time when property values may be falling.
As a result of this market uncertainty, the Prudential have deferred payments from the Prudential UK Property Fund.
What this means if you are an affected member
Members affected will be written to by the Prudential.
If you are a member with existing investment in the Prudential UK Property Fund you will remain invested.
The fund is still open to new investments and regular payments in, but any new withdrawals cannot currently be processed except for the following:
- Taking retirement benefits
- Any claims on death or critical illness
- Pension sharing on divorce
Please note, if you do make any new investments you will not be able to switch out of the fund or transfer to another pension until the deferral is lifted.
Given the volatility in the markets currently, there is also some uncertainty over valuations for commercial property and that could impact the unit price of the fund going forward.
If you are unsure what to do, you may wish to speak to a Prudenital adviser before making a decision.
If you are an affected member, once the deferral of the Prudential UK Property Fund is lifted the Prudential will write to you to let you know.
If you’ve any questions, or want to know more about this, please contact the Prudential directly.
Further information on the deferral of payments from the Prudential UK Property Fund, including a Question and Answer document, can be found at: www.pru.co.uk/propertydeferralThis entry was posted in AVC (Prudential), Uncategorized. Bookmark the permalink. ← Prudential Deposit Fund Rate Change Annual Report and Accounts 2015/16 →