The London Life Real Estate Fund was launched in 1998 to create a vehicle for direct real estate investment. The Fund invests in high-quality, income-producing properties diversified by type and location. The objective is to provide investors with strong income returns and the opportunity for long-term capital appreciation.
Through three quarters of 2023, the total gross return for the London Life Real
Estate Fund was -0.11%. Positive contributions from income and mortgage
valuation continue to be offset by the impact of the current interest rate
environment on asset values. Asset values have repriced alongside movements
in the overnight rate which the Bank of Canada (BOC) increased by a further 25
basis points in July. The BOC has since held the rate at 5% as recent economic data
from both sides of the border has pointed to a slower rate of economic activity,
with inflationary pressures generally easing. A stabilized interest rate environment
would be welcomed by industry participants and may be a catalyst for increased
investment transaction activity, which has been muted for several quarters.