Thank you for your patience during the temporary suspension on the Canada Life real estate fund. We’re pleased to inform you we now have the necessary confidence in the valuation of the properties held by the fund to take the next step towards getting back to standard operations of the fund. As of Jan. 11, 2021, the real estate fund will be open for contributions and transfers into the fund. In addition, although the temporary suspension remains in place for redemptions, the real estate fund is now in a position to allow us to accept initial redemption requests for investors who submit a redemption request between Jan. 11 and Feb. 19, 2021. Funds affected - London Life Real Estate Fund 2.17G (LLREF)
- Great-West Life Canadian Real Estate Investment Fund No. 1 (CREIF)
- Canada Life Real Estate Fund (GWLRA) SF353
What happened - On March 20, 2020 Canada Life suspended the real estate fund as a result of the market conditions caused by COVID-19. This was done in the best interest of our investors, since there was uncertainty in the valuation of the properties held by the fund. During the temporary suspension, transactions have not been allowed in or out of the fund.
- In June 2020, we resumed valuing the properties because we saw developments in the marketplace that provided more certainty in property valuations, such as the gradual lifting of emergency orders and increased visibility on the cashflow implications for real estate, including rent collection levels, and government rent-relief programs.
- The fund’s external property valuations were qualified with significant valuation uncertainty in the second quarter. Those disclosures were progressively removed in phases across the various asset classes during the third and fourth quarters of 2020.
What’s changed - Valuation confidence has returned as increased levels of investment and leasing activity have improved visibility of markets and valuations across each of the asset classes, providing the information required to inform and support property valuations.
- As mentioned, we now have appropriate confidence in the valuation of the properties held by the fund to take the next step towards getting back to standard operations of the funds. On Jan. 11, 2021, the real estate fund will be open for contributions and transfers into the fund.
- Although the temporary suspension remains in place for redemptions, the real estate fund is now in a position to allow us to process initial redemption requests for investors who submit a redemption request between Jan. 11 and Feb. 19, 2021.
To contribute or transfer into the fund - Starting Jan. 11, 2021 clients will be able to begin making contributions and transfers to the real estate fund.
- Pre-authorized contributions (PACs) and automatic switches into the real estate fund can start again. For any new requests, client signature will be required and can be submitted to head office for set up. Instructions to re-allocate funds to real estate on an existing PAC can be submitted via email if an investor has a TA.
- As communicated previously, we suggest no more than 20% of a client’s overall portfolio be invested in the Real Estate Fund. All clients, and especially those who are opening an income policy and or those who may need to have quick access to their funds, should review if this is a suitable investment with their advisor.
- Rebalancing cannot be requested at this time.
- Transaction authorization form is acceptable for transactions up to $10,000. Anything greater than $10,000 requires a client signature. Please be sure to document and retain the evidence of your conversation with the client when using a TA as per standard, compliant business practice.
To request a redemption or transfer from the fund What’s next Requests will be processed as outlined above. When we can meet 100% of requests for redemptions and are comfortable with the fund’s ongoing liquidity position, including its operational commitments, and continue to maintain valuation certainty, we can fully lift the suspension. Join us To hear an update about the real estate fund, please plan to join us on a conference call Friday Jan 8, 1:00 p.m. ET. Toll-free dial-in number: 1-800-806-5484 Participant passcode: 5645355# During the call, you’ll hear: - An update on the real estate fund from Steve Marino, SVP Portfolio Management, GWL Realty Advisors
- An overview of the redemption process
You can join the conversation by submitting your questions now. We’ll also be taking questions during the call through online submission. Visit www.slido.com and enter the following code #CLREF. For more information - To learn more, check out the resources page on the advisor site.
- Updated commentary and information about the fund is always available in the Learn more section at the bottom of the GWL Realty Advisors website.
Stay tuned for more information We don’t yet have a timeframe for when the suspension will be fully lifted, but we’ll continue to update you with any significant developments. |
