Columbia Threadneedle lifts property fund suspension

Added 12th September 2016

Columbia Threadneedle Investments said it will lift the trading suspension on the Threadneedle UK Property Authorised Investment Fund and its feeder fund on 26 September 2016 at its 12 noon valuation.

Columbia Threadneedle lifts property fund suspension

In similar fashion to its peers the firm suspended trading in the fund on 6 July 2016 as withdrawals spiked due to the uncertainty and investor fears prompted by the vote to leave the European Union on 23 June.

The fund’s depositary Citibank Europe and the FCA have been informed of the decision to lift the suspension. 

Managing director of property at the company Don Jordison said: “In the short period following the referendum we saw animal spirits drive unprecedented levels of redemptions from daily dealt open-ended property funds.  Much of the earlier commentary now appears slightly irrational and more informed reflection has settled the market.  Any effects of the Brexit vote on the overall UK economy – negative or otherwise – will take many months if not years to transpire and some time after that for the property market."

“We are pleased to open the fund again and believe this is in the best interest of our customers,” Jordison said.  “We will continue to closely monitor conditions to ensure the interests of our investors in the Fund are paramount at all times.”

Columbia Threadneedle Investments said since July the fund has completed, exchanged or agreed to sell 25 properties totalling £167m across all UK regions and property types, with no forced sales. The prices achieved were in aggregate less than 1% down from the last independent valuation prior to the referendum. 

The fund will open on bid basis, without redemption penalties, and will return to standard monthly valuations. Aside from moving to weekly valuation during the suspension period, the fund’s price was not altered through any form of fair value pricing adjustment.

The Threadneedle PAIF invests in physical UK commercial property such as warehouses, shopping centres, high street shops and offices around the UK. 

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Alex Sebastian

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Alex joined Portfolio Adviser in April 2014 and has been a financial journalist since 2008. He has previously held editorial positions at the Financial Times Group and Euromoney Institutional Investor. Alex is NCTJ qualified and has a degree in economics from the University of Sussex.



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