LF Canlife
UK Property ACS

The LF Canlife UK Property ACS aims to deliver long-term income and capital growth through a diversified portfolio of actively managed UK commercial property.

Fund management team

Canada Life Investments possess an award-winning, 23-strong property team who are responsible for managing c. £2.1 billion* in direct property assets. Our belief is that a comprehensive understanding of the underlying macroeconomic (macro) environment, in combination with detailed research and analysis into individual markets, sectors and stocks is vital in delivering market-beating returns. The LF Canlife UK Property ACS is co-managed by Property Investment Director, Michael White and Fund Manager Ben Wood, with the support of the wider property team.

Michael joined Canada Life Investments in 1986 and sets the annual investment strategy for our UK and Ireland property funds, as well as leading the investment acquisition programme in finding suitable properties to match the requirements of each individual fund. Michael is a professional member of the Royal Institution of Chartered Surveyors. Ben joined Canada Life Investments in 2005 and is a professional member of the Royal Institution of Chartered Surveyors.

* As at 30/06/18

fund strategy

The LF Canlife UK Property ACS ("the Fund") seeks to deliver a core-plus return profile, combining an attractive income with the potential for capital growth, over the course of a 5-7 year cycle. The managers aim to balance the portfolio between high quality, income-generating assets as well as some more speculative developments to ensure an optimum risk/return strategy. Furthermore, our active asset management approach seeks to add significant value for the Fund over the long-term.

how the fund is managed

The LF Canlife UK Property ACS is managed via a blended approach, incorporating both top-down and bottom-up research. In addition, at Canada Life Investments we believe actively managing our assets enables us to generate the best risk-adjusted returns. We have an in-house asset management team – independent to the fund management team – which allows us to add value to each individual property.

A top-down overlay - macro factors play a significant role in our property investment process, most prominently in sector considerations. Consumer spending habits and wage growth indicators are very important for the retail sector, business investment trends often influence demand for office space and PMI, productivity and logistics analysis are key drivers for the industrial sector. The team set the Fund’s strategy at the start of each calendar year based on their forecasts, but also take longer-term trends and the latest government initiatives, such as infrastructure plans, into consideration.

Fundamental bottom-up research - our sector selection is primarily driven by the teams’ macroeconomic forecasts, whilst stock selection is driven by our research function and local knowledge, which seeks to identify attractive bottom-up opportunities in the market. The fund managers then aim to acquire assets that match this view, diversified across sectors and styles, utilising our long-term track record to extract more value from the market.

reasons to recommend

A TAX TRANSPARENT STRUCTURE 

The LF Canlife UK Property ACS is a UK-domiciled tax transparent fund (TTF), it is not subject to UK corporation tax, income tax or capital gains tax – rather the tax is calculated at the investor level when units are sold in the fund. Therefore it is ideal for tax-exempt investors such as defined benefit and defined contribution pension schemes.

AN AWARD-WINNING TEAM

At Canada Life Investments, our property team have been active in the market since the 1960s, and the three most senior members of the team have worked here together since the mid-1980s. The team have built up a strong track record over this period, most recently winning the Three Year Peer Group Performance Awards in the Small Balanced Funds (below £100m) category at the 2017 UK Property Investment Awards.

ACCESS TO THE MARKET

Unlike bonds and equities, property remains a relationship-driven market. Over a number of years we have built up a significant network of contacts and agents, which enables us to effectively evaluate the opportunities available in the market. We also ensure we foster and engage with our tenant base, which enables us to understand any potential demand/supply imbalances which may offer opportunities for value creation.

ACTIVE ASSET MANAGEMENT

As well as an award-winning fund management team, we also adopt a hands-on approach, actively managing our properties through our in-house asset managers. Ultimately, client and tenant service is at the forefront of our business and we believe our ability to manage these functions in-house generates significant added-value.

Past performance is not a guide to future performance. The value of investments may fall as well as rise and investors may not get back the amount invested. Income from investments may fluctuate. 

The Fund is an Authorised Contractual Scheme (ACS) and is suitable for institutional and professional investors. For more information, see the ACS prospectus available at www.canadalifeinvestments.com. Property held by the ACS may not be readily saleable. This means that investors in it may not always be able to realise their investments when they choose. In such cases the encashment of units in the ACS may be postponed by up to 6 months. The value of property is generally a matter of a valuer’s opinion rather than fact. Costs of buying and selling real property are generally much higher than for other types of assets. Property investments may be subject to significantly wider price spreads than bonds and equities which could affect the valuation of the fund by up to 8.00%.

Interested in this fund and would like to find out more?

Contact our team who will be happy to answer any questions you may have about this fund.

Tel Icon +44 (0)20 7415 6490

Email Icon contactclinvestments@canadalife.co.uk

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