Royal London Pension Property fund

13 July 2016
Following the UK's decision to leave the EU, you may have seen a number of high-profile property funds suspend their trading. I'd like to reassure you that the Royal London Pension Property fund remains open for business.

Indeed, we're comfortable with its current levels of liquidity - and it continues to grow and outperform its industry benchmark.

At this time, we have no plans to put any trade restrictions in place. Similarly, there will be no disruption to the ongoing regular income payments currently being paid to Royal London drawdown customers.

What's happening in the market?

It's fair to say the referendum result sent ripples of uncertainty throughout the financial sector. In the UK property market in particular, it's been widely reported that greater numbers of investors have been trying to sell their investments in property funds.

This has created a lack of liquidity in other property funds, forcing a number of fund managers to limit or stop customers selling their property investments.

How has this affected the Royal London Pension Property fund?

We continue to strongly believe in the value property can offer as a long-term investment option. And, despite the recent market uncertainty, we've maintained good levels of liquidity in our property fund.

This has been down to a combination of our well-diversified property portfolio, along with our continued excellent levels of new pension business - with many new and existing customers investing in our property fund.

Also, as a mutual we're not driven by the demands of shareholders. That means we're able to take a long-term view over our pension customers' investments. So they won't be as adversely affected as those investors looking to make short-term decisions.

What's next?

We'll continue to make our decisions based on the long-term best interests of our customers. We'll be actively monitoring the market and will keep you updated if our position changes.

In the meantime, you can be confident that our property fund remains an available investment option for your Royal London pension clients.

About the author

Isobel Langton

CEO Intermediary

Isobel’s background is steeped in life and pensions. Having worked for Irish Life in a number of roles in the UK, she joined Royal London shortly after it acquired United Assurance Group (UAG) where she was responsible for integrating customer service for all of Royal London and UAG. She then moved to Scottish Life as a member of their leadership team focusing on customer experience, with roles leading Customer Services teams and Business Transformation initiatives. In June 2012 Isobel was appointed as the Group Customer Services Director, where she brought together the Customer Service businesses across our life and pensions brands. Isobel moved to her current role at the end of February 2014.

Last updated: 13 Jul 2016

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The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London EC3V 0RL.