RLP Property fund update

RLP Property Fund restrictions

We’ve made the decision to restrict some transactions from our RLP Property Fund, effective from Monday 30 March 2020.

This decision has been made in the long term interests of our customers as a whole and we’ll continue to closely monitor the fund and provide updates throughout this restricted period.

This restriction does not impact anyone who is invested in the Property Fund through the Governed Range, the Managed funds or Target Lifestyles (including the Royal London workplace default solution).

If any of your transactions are affected by these restrictions then we will have contacted both you and your adviser to confirm this.

Please find below a list of questions and answers on the restrictions to our Property Fund. If you have further questions then please contact your usual Royal London contact in the first instance. Or visit our Contact us page.

We told you on 30 March about the temporary restrictions to some transactions from our RLP Property Fund.

The fund’s surveyors have informed us that the material uncertainty remains in the valuation of the Fund’s property assets. On this basis we have made the decision to continue with the temporary restrictions in the interest of all customers.  While we do see evidence of material uncertainty being removed from valuations in certain niche commercial property sectors, material uncertainty continues to apply to the valuation of the Fund’s assets. If any of your transactions are affected by these restrictions then we will contact both you and your financial adviser to confirm this.

Some transactions which involve the Property Fund will be delayed for a period of up to six months. This delay does not apply to normal retirement claims, death claims or income requirements in drawdown.

We have seen increasing uncertainty related to the valuation of property fund assets due to the impact of the Covid-19 virus. This has caused a number of Property funds across the industry to suspend dealing. Our property surveyors have confirmed that going forward their valuations will include a material uncertainty clause. This, combined with reduced transactions in the market, means there is an increase in the likelihood of unfair outcomes to customers and has led to our decision to suspend the fund for direct investment. Throughout this period our focus is on ensuring the best possible customer outcomes, keeping these in line with both customer expectations and fairness across customers in different situations.

Royal London will remove the restrictions when confidence returns to the market and there is more certainty regarding the valuations of property. The restrictions will only continue for as long as they are in the best interests of customers.

Any new withdrawal transaction that is impacted by the restriction will be delayed for up to six months from the date the request is received.

You will be affected if you are invested in the Property Fund and you are:

  • Taking full or partial retirement savings before reaching Selected Retirement Age.
  • Starting income release before reaching Selected Retirement Age.
  • Making a change to the Selected Retirement Age.
  • Switching in or out of the Property Fund during this restricted period.
  • All automatic rebalancing instructions will be cancelled during this restricted period.
  • Any regular contribution instruction which is currently allocated to RLP Property fund will instead be allocated to the RLP Deposit fund unless we receive alternative instructions.
  • All new contributions to the RLP Property Fund.


Withdrawal transactions will be made at the earliest of –

  • After 6 months – any new withdrawals requested will be delayed for up to six months from the date the request is received.
  • The end of the restricted period (if less than 6 months).
  • At Selected Retirement Date

The following payments and transactions will continue to be made:

  • Death benefits
  • Taking full or partial retirement savings on or after Selected Retirement Age.
  • Existing income release transactions, including regular income and tax-free cash lump sum.
  • Receive payment from all other funds invested apart from any investment in the Property Fund, with the remainder being processed when this restricted period ends.
  • Wait until this restricted period ends and the Property Fund starts processing transactions and process the whole transaction at the same time.
  • Choose not to proceed with the transaction.
  • Choose to disinvest from the Property fund at the end of the 6 months.

The worldwide spread of Covid-19 has created exceptional circumstances in global markets, UK property included. You will continue to see a price and unit value included in your annual statements and online. The impact on your fund value will depend on how much of your savings you have invested in the Property Fund. Delaying some transactions from the Property Fund will help to protect the long term interests of our customers. If you have concerns about what the impact could be for you, you should discuss this with your financial adviser.

We’d recommend that you speak to your financial adviser to discuss the best course of action including any tax implications or payments from your policy.

When this restricted period has ended we will process your transaction. If you have received some of your payment then we will automatically pay the remainder.

If no payment has been received then we will send out the relevant forms in the mail and make payment when the required information has been returned.

We’ll automatically process any transaction which has been restricted when you reach your Selected Retirement Age.

If no payment has been received then we will send out the relevant forms in the mail and make payment when the required information has been returned.

We’ll automatically process any transaction which has been delayed if it has not been processed by the end of this restricted period.

If you have received some of your payment then we will automatically pay the remainder.

If no payment has been received then we will send out the relevant forms in the mail and make payment when the required information has been returned.

When this period has ended we will process your transaction. If you have received some of your payment then we will automatically pay the remainder. Forms will be mailed out if you have received no payment and payment will be made on the return of the required information.

Updates will be posted to the website.

Yes, the policy Terms and Conditions allow Royal London to defer a transaction in the Property fund for up to six months.

Yes, they are both fully aware of our plans and are supportive of Royal London’s approach.

We continue to monitor the impact of current market conditions on all the investment options we offer. If we need to restrict transactions from other options we will communicate this as soon as possible after the decision has been made.

Complaints can be made to Royal London or an Ombudsman following our complaint process. To help us deal with your concerns, please mark your complaint ‘Fund Deferral’.

If after reading the Questions and Answers section you still have unanswered queries then please contact your Financial Adviser in the first instance. Or visit our Contact us page.