Canada Life imposes a six month deferral period on its UK Property Life and Pension fund
Canada Life has today 10th December 2008 imposed a deferral period for policyholders on switches and withdrawals from its UK Property Life (MF306) and Pension (MF806) funds for up to six months from the date of request. This announcement relates to the UK Property Life and Pension funds only and no other Canada Life internal property funds or any third party property funds.
This decision has not been taken lightly, however, it reflects the general downturn in investor demand for UK commercial property in the last year.
The effect of the deferral is that clients will not be able to encash or switch units out of the fund on the date the request is made. Canada Life will endeavour to complete any transactions as soon as possible after the request is received. We are pursuing a number of options to raise cash in the fund to allow withdrawal requests to be met as soon as possible
This deferral will not apply to certain transactions such as, regular withdrawals already in place and policy maturities. Other special situations such as death claims will also not be subject to the postponement.
In line with many other companies, the commercial property market decline has led to significant and sustained withdrawals from property funds. Therefore, in order to continue to meet payment obligations to policyholders, it will be necessary to sell property investments in the fund.
Given that it can take several months for the sale of a property, companies offering property funds have the option of introducing a deferral period on withdrawals. This is to allow the fund manager the opportunity to sell properties at the best value and therefore for the benefit and protection of all policyholders either leaving the fund or those who wish to remain invested in these funds.
Property remains an important asset in a well balanced and diversified portfolio for many clients over the medium to long term.
For further information please contact our dedicated Customer Service call centre on 0845 6060708
Page last updated December, 2008
