Trading has been suspended in the WS Canlife UK Property ACS, along with a range of onshore and pension products that invest in the fund.
The following funds have been suspended: Canlife UK Property LS2, Canlife UK Property LS3, Canlife UK Property LS4, Canlife UK Property LS5, Canlife UK Property, Canlife UK Property, Canlife UK Property Income, Canlife UK Property PS4, Canlife UK Property PS5.
Waystone Management UK, the fund's authorised corporate director following the sale of Link Fund Solutions to Waystone Group, confirmed the move to close was made as the manager was informed the "overwhelming majority of unitholders" intend to redeem their holdings.
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The fund has approximate assets under management of £254m, which would fall 59.8% to £102m, if the redemptions were met.
As such, following conversations with CLAM, Waystone concluded there is "no reasonable expectation of foreseeable growth as there is inadequate demand for the sub-fund of the scheme".
"Additionally, the ACS manager considered a scheme of arrangement for the ACS however a suitable fund with a similar investment objective and policy could not be identified. The ACS manager therefore considers that the sub-fund of the scheme would no longer be commercially viable."
The first distribution is expected to reach investors in January 2024, although "early indications" suggest the fund closure will take "roughly two years" to complete.
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Michael White, head of UK property at CLAM, said: "Following a strategic review by Waystone Management UK and Canada Life Asset Management, we can confirm today that we have begun the process of winding up the WS Canlife UK Property ACS fund, subject to FCA approval.
"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."