Real Estate Fund Update

London Life and the Fund manager, GWL Realty Advisors, Inc., are continuing to work to lift the current suspension on transfers and withdrawals from the London Life Real Estate Fund. Lifting the suspension remains a top priority for us.

Although the suspension remains in place, we expect the Fund will be in a position to allow us to process a second payout for unitholders as of Oct. 22, 2010, using the unit value on that day.

Submitting Payment Requests

As with any investment decision, we suggest you discuss your investment strategy with your financial security advisor before making a decision to submit a request to transfer or withdraw from the Real Estate Fund. Your advisor can also tell you about any applicable fees or tax implications.

• You can submit a request for a transfer to another fund within your policy, or for a withdrawal between Sept. 13 and Oct. 1, 2010.
• If you have a balance remaining from the Dec. 4, 2009 payout, it will be automatically included in the Oct. 22, 2010 payout – you do not need to submit any new paperwork.

Your financial security advisor can help you complete the required forms. You can also contact one of our Client Service Centre representatives at 1-877-566-5433.

If you have a balance carried forward from the Dec. 4, 2009 payout

You do not have to submit any new paperwork if you want to receive the balance of your Dec. 4, 2009 request. It will be automatically included in the Oct. 22, 2010 payout and processed with the same priority as new requests.

All Requests

We must receive your request at our London or Montreal administrative head office before 8 p.m. Eastern Time on Friday, Oct. 1, 2010. To be fair to all unitholders, there will be no exceptions to this deadline.

Requests from the Fund will be processed effective Oct. 22, 2010, using the unit value on that day, which may be higher or lower than on the date of the request. These transactions are subject to applicable fees and taxes. We will not pay out more than the value of the Real Estate Fund units in your policy as of Oct. 22.

If the total amount of all unitholder requests exceeds the cash available for distribution from the Fund, you will receive a percentage of your request. Any remaining balance of your request will be carried forward to the next payout period.

If you want to change or cancel a request

You can change or cancel a new or carried-forward request provided we receive a letter from you with written instructions at our London or Montreal administrative head office before 8 p.m. Eastern Time on Friday, Oct. 1, 2010. Your letter to request a change must include:

• Your signature, including date of signature
• Your name
• Your policy number
• New amount requested, or if you’d like to cancel the entire request

About the Fund

The Fund maintains a well-diversified portfolio of high-quality properties that generate stable, long-term income. Over time, the Fund has performed well and provided positive returns. GWL Realty Advisors and London Life remain committed to this Fund for the long term and to maintaining its position as an excellent component of a well-balanced portfolio.

As of July 31, 2010, 22 properties have been sold generating $206 million in total net cash proceeds. Additional properties are in various stages of marketing for sale.

GWL Realty Advisors continues to actively manage the Fund and selectively sell properties to increase cash while preserving the Fund’s diversification by property type and location. When the Fund has enough cash to process transfers and withdrawals on a daily basis, we’ll lift the suspension.

For more details, please see the most recent Fund report on the GWL Realty Advisors website.

More Information

For more information about the Real Estate Fund, please contact your financial security advisor or the Client Service Centre at 1-877-566-5433.

Learn more about how the Fund’s total return and unit value are determined and the current status of the Canadian commercial real estate market.

More information about the Real Estate Fund and its holdings can be found on the GWL Realty Advisors website.