Real Estate Fund Update
Although the suspension on switches and withdrawals remains in place, the Fund was in a position to process an initial payment for unitholders who submitted a request by the June 11, 2010 deadline.
Processing Payment Requests
The total amount of switches and withdrawals requested by unitholders of the Real Estate Fund exceeded the cash available for distribution on July 9. Therefore, payments were made as a percentage of the total amount requested.
The cash available for distribution from the Fund was 58% of the total requests submitted by unitholders. The amount of each unitholder’s switch or withdrawal reflected this percentage, less applicable fees and taxes. If the request was $500 or less, unitholders received the full amount (100%), less applicable fees and taxes. Regardless of the amount requested by a client, we did not pay out more than the value of the units in a client’s policy as of July 9, 2010.
Any remaining balance of the requests is being carried forward to the next payout period. The timing of the next payout is not yet known and depends on how long it takes to build up the cash position of the Fund. Once we have determined the dates for the next payout period, we will contact unitholders. They will then have an opportunity to change or cancel their remaining balances.
Lifting the Suspension
Canada Life and the Fund manager, GWL Realty Advisors, Inc., are continuing to work to lift the current suspension on switches and withdrawals from the Canada Life Real Estate Fund. Lifting the suspension remains a top priority for us.
We will be able to fully lift the suspension once the Fund has enough cash to process switches and withdrawals on a daily basis. The primary way to increase cash in the Fund is to sell selected commercial properties held by the Fund.
As of June 30, 2010, 26 properties have been sold generating $289.1 million in total net cash proceeds. Additional properties are in various stages of marketing for sale.
For more details, please see the most recent Fund report on the GWL Realty Advisors website.
A Sound Investment
The Fund maintains a well-diversified portfolio of over 145 high-quality properties that generate stable, long-term income. Over time, the Fund has performed well and provided positive returns. GWL Realty Advisors and Canada Life remain committed to this Fund for the long term and to maintaining its position as an excellent component of a well-balanced portfolio.
More information
For more information about the Real Estate Fund, please contact your advisor or the Client Service Centre at 1 888 252-1847.
Learn more about how the Fund’s total return and unit value are determined and the current status of the Canadian commercial real estate market.
More information about the Real Estate Fund and its holdings can be found on the GWL Realty Advisors website.
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