Deferral of Standard Life Property Funds

Standard Life has introduced a queuing system for switches, transfers and surrenders from its UK Unit Linked Life and Pension Property Funds with effect from the close of business 26th January 2009.

This follows similar moves by a number of other providers over the last year or so.

The market for selling commercial properties has been deteriorating since the second half of 2007. The credit crunch has resulted in considerably fewer buyers of commercial property, which in turn has led to increasing pressure on property fund managers to accept lower prices when selling properties and to properties taking longer to sell.

Our UK Unit Linked Life and Pension Property Funds invest directly in commercial land and buildings, such as office blocks and shopping centres. Unlike equities, the selling process can be lengthy as the fund manager needs to offer the properties for sale, find prospective buyers, secure the best price for the investor and complete the legal transaction. Unless this selling process is controlled, there is a risk that the fund manager will not achieve the best deal for investors in the fund, including those who intend to remain invested over the medium to long-term.

Therefore, in the interests of all customers, those who wish to leave the fund and those who wish to stay, we have decided to introduce a queuing system.

Who is affected

Customers in the Standard Life UK Unit Linked Life and Pension Property Funds only, who request a switch, transfer or surrender will be placed in a queue and will have their requests processed within six months from the date of the request or when the necessary funds have been raised from the controlled sales of property.

Customers who are taking retirement or maturity benefits and policies that are paying death claims will not be required to queue.

For further information, visit standardlife.com