The insurer said the move follows the latest review of portfolio property valuations and current market conditions and reflects its view that the property market’s behaviour is returning to a more stable pattern following the UK’s decision to leave the European Union.
“Consequently we believe an adjustment is no longer necessary to ensure fair treatment of investors considering investing in, or withdrawing from, the funds,” it said.
Canada Life lifted the suspension of redemptions on the Canlife UK Property life and pension funds on 1 September 2016 after it had been originally imposed on 6 July following the market instability which resulted in the wake of the Brexit vote.
Market volatility eases
“As transactional evidence of market values has emerged post the EU Referendum decision, valuers have removed their caveats on valuations. I am pleased that in light of this we are able to return to our normal pricing practices and therefore remove our fair value adjustments from all our funds,” said David Marchant, chief investment officer of Canada Life.
The suspensions of trading and value adjustments at most of the leading UK property funds imposed in early July after the EU referendum have now been largely lifted.
On 26 September Standard Life Investments announced it would reopen the suspended £2.6bn UK Real Estate Fund and associated feeder fund from 17 October. This followed a similar announcement several days earlier from Henderson Global Investors, which said it will re-open its UK Property PAIF and its feeder fund for trading on 14 October.
On the same day Columbia Threadneedle Investments said the trading suspension on the Threadneedle UK Property Authorised Investment Fund and its feeder fund was to be lifted from 26 September.
Of the major UK property fund providers only Aviva Investors and M&G Investments are yet to confirm date for the lifting of restrictions on their offerings.
However, although the turmoil has been remarkably short lived, the experience has raised questions about the suitability of the open-ended structure for property funds.