Canada Life lifts suspension on £450m property funds

Property-Building-Growth-House-Housing-700x450.jpgCanada Life has lifted the suspension of redemptions on the Canlife UK Property life and pension funds after almost two months.

The move will have effect from today although the groups warns property valuations “remain subject to uncertainty”.

Nine asset managers suspended trading in their property funds due to a surge of redemption requests following the EU referendum vote and the consequent volatility in the commercial property sector.

So far, only Aberdeen Asset Management has lifted the suspension of withdrawals from its UK Property fund.

Canada Life will continue to apply a fair value adjustment on property values which currently is -7 per cent across all £450m property funds. It said the adjustment will be monitored on a weekly basis and and amended as new evidence becomes available.

The firm, which sold two properties in August to fulfil its liquidity requirements, said it will also consider a range of sources including independent valuations of the property market.

Canada Life chief investment officer David Marchant says: “We have had two month end pricing valuations since the United Kingdom’s vote to leave the European Union and our decision to defer requests to withdraw investment in the property funds.

“Real estate investment and occupational transaction activity has been subdued in that time, and the market outlook remains unclear.”