Market gyrations following the June Brexit vote in the UK prompted some firms to halt redemptions from property funds; one firm's suspension lasted almost two months.

Canada Life yesterday ended its two-month suspension of redemptions on the Canlife UK Property life and pension funds, introduced amid market turmoil after the 23 June Brexit vote.

The decision to suspend the funds was taken on 6 July after a sharp rise in requests to withdraw or switch from the property funds, the business said in a statement. 

A number of other firms halted redemptions amid difficult market conditions following the referendum. Aberdeen Asset Management, for example, halted pull-outs from one of its fund for about a week before returning to normal; M&G halted redemptions for similar reasons. 

“Though conditions in the commercial property market show some stabilisation, property valuations continue to be subject to some uncertainty due to the unknown impact of the UK’s vote to exit the European Union. Canada Life will continue to apply a fair value adjustment on property values in the fund which seeks to balance the interests of policyholders who may leave the fund with the interests of those that remain,” it said in a statement yesterday. 

The level of fair value adjustment accounts for a range of sources including independent valuations of the property market. Currently, this adjustment is -7 per cent across all £450 million property funds, Canada Life said.

Canada Life is part of a group of companies controlled by Great-West Lifeco, the Canada-headquartered group.