SDIO suspend redemptions from the BCP Property Value Add Fund
Background The BCP Property Value Add Fund (the ”Fund”) is available as an investment option through our Self-Directed Investment Option (SDIO).
What’s happened?
The manager of the Fund, BCP Fund Management Designated Activity Company ( “BCP”), has decided to temporarily suspend redemptions in the Fund from and including 1 March 2023.
What does this mean?
If your client is invested in this Fund through SDIO, redemption which were due to be processed using the net asset value (“NAV”), will not be processed until BCP has lifted this suspension.
Why did BCP suspend redemptions from the Fund?
BCP has informed us that they took this decision based on a prudent analysis of current cash levels in the Fund. By suspending redemptions from the Fund, BCP believes they are protecting the interests of all Unitholders. Redemption requests have recently increased, and there have not been adequate levels of new subscriptions to match the outflows.
What happens to existing asset management projects?
BCP has indicated that the Fund has several ongoing asset management projects related to specific assets held by the Fund designed to increase Unitholder value. The board of directors of BCP believe that it is in the best interests of Unitholders to continue with these initiatives and not to dispose of any of these assets at this time.
While the Fund has been impacted by the general correction in property valuations caused by the change in the interest rate environment, BCP has indicated that it remains confident that the project plans in place for each property will realise value over the coming months to the benefit of all Unitholders.
How long will this suspension be in place?
BCP has indicated that the suspension is expected to be in place for an initial period of up to 12 months. BCP will review this quarterly.
Does this impact any other Funds available through Aviva?
This BCP decision impacts no other fund from Aviva.
Will Aviva be writing to affected policyholders?
No. Aviva is communicating with Brokers about BCP’s decision to suspend the Fund.
When was Aviva notified of the suspension?
Aviva was notified on 10 March 2023. A copy of this letter is here.