Aviva suspends property fund redemptions after Brexit vote

Aviva, the savings and investment group, has suspended redemptions from its £1.8bn property fund, the Guardian reported.

It took the decision following the Brexit vote, which triggered a surge of requests from investors to pull their money out of its UK Property Trust.

“We have acted to safeguard the interests of all our investors by suspending dealing in the fund with immediate effect," the newspaper cited Aviva as saying.

“Suspension of dealing will give Aviva Investors greater control in managing cashflows and conducting orderly asset sales in order to meet our obligations to investors wishing to redeem their holdings.”

The suspension follows the same move by Standard Life yesterday when the company said investors in its property funds were told that could not withdraw their money, after a rush of withdrawals following the UK’s decision to leave the EU.

The firm halted trading on its Standard Life Investments UK Real Estate Fund and associated funds at midday on Monday, citing “exceptional market circumstances” for the decision. It said the suspension would remain in place until it is “practicable” to lift it, and that it would review the decision at least every 28 days.

Aviva shares were down 2.3% to 382p at 1340 BST.