The Great-West Life Assurance Co. has placed a temporary moratorium on redemptions from its Canadian Real Estate Investment Fund No. 1 effective the close of business Dec. 15.

The fund is a segregated fund that holds a diversified portfolio of high-quality income producing properties.

“Given the current economic environment, redemption requests have recently increased. Real estate assets are generally less liquid than other major asset classes and cannot be rapidly liquidated,” the company said in a release.

“It has been determined that a temporary moratorium on redemptions is necessary to ensure equitable treatment for all investors in the fund,” the company added.

“This segregated fund has performed well over many years,” said Allen Loney, president and CEO. “It is important in today’s difficult economic environment that we continue to manage the fund in a way which balances the long-term interests of all participants in the fund.”

Separately, London Life Insurance Co. announced a temporary moratorium on redemptions from London Life Real Estate Fund 2.17G, also effective close of business Dec. 15.

The segregated fund which holds a diversified portfolio of high-quality income producing properties.

The company gave a similar reason for halting redemptions, namely “to ensure equitable treatment
for all investors in the fund.”

London Life Insurance is a subsidiary of Great-West Life Assurance Co. Both companies are members of the Power Financial Corp. group of companies.

IE