• 21 May 2021

    Important change affecting Aviva Investors Property funds

    On Wednesday 19 May 2021 we were notified that the Aviva Investors UK Property Funds are closing on 19 July 2021. Dealing in the funds was suspended in March 2020 due to material uncertainty over the valuation of property within the portfolio, brought about by the Covid-19 pandemic.

    Which funds are affected?

    • Phoenix Wealth Aviva Investors Property
    • Phoenix Wealth Aviva Investors Property S3
    • Phoenix Wealth Aviva Investors Property S4
    • Phoenix Wealth Aviva Investors Property (Life)
    • Aviva Inv UK Prop Fdr Acc 1
    • Aviva Inv UK Prop Fdr Acc 2

    Why is this happening?

    Aviva Investors (Aviva) said it has become increasingly challenging to generate positive returns from the asset class, while also maintaining the necessary liquidity to re-open the funds. 

    Aviva had placed the funds under review following its value assessment report, published in January, but has now concluded that it is in investors’ best interests to wind-up the funds and return cash to investors in a fair and orderly manner.

    The review, combined with forecast redemption levels upon re-opening, concluded that the Funds’ ability to fully benefit from the economies of scale and the diversification of investments that collective investment schemes normally bring would soon be limited. Size is particularly important for funds that invest in property directly because the costs involved in acquiring, managing and disposing of properties are usually much higher that the costs associated with other asset types.

    What does this mean for customers invested in one of these funds?

    • Dealing in the funds will remain suspended until they start being wound down on 19 July 2021. 
    • Because of this, customers remain unable to pay into, make withdrawals from, or switch into or out of any of the affected funds.
    • We are now considering how we can best support our customers and financial advisers who are affected by the fund closures, and will be updating them in due course.

    Where can I find out more?

    • Further information can be found on the Aviva Investors website.
    • You can also view details of the funds your clients are invested in online. To do this, you’ll need to be registered for our online services. Registering is easy, just visit our registration page.
    • We will continue to update our website when we receive further information and will get in touch with you about your clients’ options as soon as possible. 

    In the meantime, if you have a policy query, you can call us on 0345 129 9993. We’re here from 8.30 to 5pm, Monday to Friday.