NU defers property redemptions for up to six months

Investors in Norwich Union's unit-linked property fund may have to wait up to six months to get access to their money, as tough market conditions force the group to temporarily defer settlements.

The deferral period, which could last up to six months, will affect transactions including surrenders, switches, partial surrenders, transfers, and new requests for automatic partial withdrawals.

Exceptions to the deferral period will include circumstances such as critical illness, and policies with a contractual maturity or retirement data.

NU marketing director David Barral says: "We recognise that this will be disappointing for some investors who may want immediate access to their capital. However, this action is in the best interests of investors by protecting the long-term value of their investment and avoiding having to sell properties below their market value."

The changes apply only to the Norwich Union unit-linked Property Fund available through life onshore bonds and pensions.

Other UK property funds offered by Norwich Union, including the Aviva Investors Property Trust, which was formerly the Norwich Property Trust, continue to trade as normal. Norwich Union's equity and bond funds are also unaffected by this