Becton funds latest in redemption freeze
Becton Investment Management has joined a raft of other funds in temporarily suspending redemptions from a number of its funds as volatile market conditions continue to negatively impact on property markets.
Becton has suspended redemptions from one of its funds while closing applications in two others.
Redemptions from the Becton Diversified Property Fund (BDPF) have been temporarily suspended, effective November 1, 2008, while also being closed to new applications from the same date.
Becton said applications for units in the fund received in November will be returned to applicants, along with any application amounts.
In line with the actions of many other managers, quarterly distributions will continue in the usual manner, but the group’s distribution reinvestment plan has been put on hold until further notice.
Becton will continue to regularly review this position, however it is expected that redemptions from BDPF will remain suspended until the volatility in financial markets subsides.
In addition, both the Becton Industrial Fund (BIF) and Becton Office Fund (BOF) will be closed for new applications, effective November 1, 2008.
Becton said it would look to make asset sales from these funds to facilitate liquidity in 2009, provided it is in the best interests of investors and market conditions are appropriate.
Despite the current volatility experienced in global equity and credit markets, Becton believes the long-term fundamentals of Australian direct property remain solid.
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