Canada Life to shutter UK property fund after wave of redemptions

AUM has fallen to approximately £102m from £254m, leaving it ‘no longer commercially viable’


Canada Life Asset Management has announced the closure of its UK property fund following a wave of redemptions.

Waystone, which carries out administration for the strategy, said that following recent redemptions, the WS Canlife UK Property ACS fund assets under management has fallen to approximately £102m from £254m.

Waystone said that there is “no reasonable expectation of foreseeable growth” as there is inadequate demand for the offering.

See also: UK property is ‘essentially uninvestable’

Michael White, Canada Life Asset Management head of UK property, added: “Following recent redemption requests from investors, we have concluded that after the redemptions, the fund will not be commercially viable or in a position to deliver the best outcome for its investors. 

“As a result, trading has stopped and under FCA guidelines Canada Life Asset Management will be given time to achieve best value for investors as it liquidates the fund’s assets.

“Canada Life has also stopped trading in its property linked life and pension property funds which have been impacted by the closure of the WS Canlife UK Property ACS fund. Customers, advisers and stakeholders have been made aware of this decision and will continue to be updated throughout the closure process.”

The UK property fund sector has been hit by withdrawals in recent times, leading to strategies being suspended or closed as firm’s struggle to fulfil withdrawals due to the illiquid nature of the asset.

Last year, Columbia Threadneedle temporarily suspended its UK Paif and feeder fund “to protect the interests of investors”, before reopening it in February 2023.

See also: Is there still life in commercial property?

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