UK Property Fund closure

Richard Lavelle
Richard Lavelle, Head of Proposition
Tuesday, October 12, 2021

UK Property Fund closure

A decision has been made to wind down and close the UK Property Fund to new and existing investors. It will be closed in a way that ensures fair treatment to all investors. Therefore, a six month delay (notice period) in withdrawals and switches from the fund has been introduced, effective from 8th October 2021. After the six months the fund will close.

Questions and answers

Why has this decision been taken?
The fund has experienced ongoing outflows in recent years resulting in the number of properties in the fund reducing. Demand for investment in UK property appears to be limited and further outflows are expected in the future. As the fund size decreases the number of properties will continue to reduce and the fund will become less diversified.

Irish Life anticipates that the size of the fund into the future will not be large enough to generate the level of diversification and investment opportunity expected of a property fund.

What does this mean for customers?

  1. Canada Life Asset Management (CLAM) will endeavour to sell all the remaining properties in the fund over this six month period. 
  2. As properties are sold, cash levels in the fund will increase. Once there is sufficient cash in the fund, we will partially switch some units in the UK Property Fund into the Global Cash Fund. 
  3. Customers can then switch into other funds including property funds if available on their plan.
  4. After the six month notice period (or sooner if appropriate) any remaining units held in the UK Property Fund will be switched into the Global Cash Fund.  

Customers will receive a partial and final fund switch letter confirming each fund switch. 

What if a customer is paying regular payments that invest in the UK Property Fund?
Regular payments will be redirected to the Global Cash Fund 30 days from date on the customer letter. Customers can switch to other funds available on their plan.

How is Irish Life communicating to customers?
Irish Life will write to customers invested in the UK Property Fund to tell them that it will be closed. 

How are these decisions made?
Decisions are taken on the advice of Irish Life’s Chief Actuary. 

Do customers need to do anything?
Customers do not need to take any action. Customers can switch to other funds available on their plan. It’s a good opportunity for customers to meet with their financial adviser to discuss their investment options.   

What are the implications for customers who take an income from the property funds? 
There will be no change to existing income arrangements or deemed distribution payments.    

What are the implications for death claims?
The six month notice period does not apply to death claims.

What are the implications for retirement claims (early/normal/late)? 
The six month notice period does not apply to retirement claims at or after normal retirement ages or early retirement due to ill health. The six month notice period does apply to early retirement claims.

For further information on the funds and customers affected, please contact your account manager.