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Columbia Threadneedle to lift suspension on property fund

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Columbia Threadneedle to lift suspension on property fund

Columbia Threadneedle is lifting the suspension on its Threadneedle UK Property Authorised Investment fund on 26 September.

The firm suspended trading of the £1.3 billion fund in July in an effort to protect existing investors from the significant outflows seen in retail property funds in the wake of UK’s decision to leave the European Union.

The fund will open without redemption penalties, and will return to standard monthly valuations.

‘Any effects of the Brexit vote on the overall UK economy – negative or otherwise – will take many months if not years to transpire and sometime after that for the property market,’ Don Jordison, managing director of property, Columbia Threadneedle Investments, said.

He added he was pleased to open the fund again and believes it is in the best interest of clients. However, he pointed out that the firm will continue to closely monitor the condition of the fund.

‘Since July, the fund has completed, exchanged or agreed to sell 25 properties totalling £167 million across all UK regions and property types, with no forced sales.'

Columbia Threadneedle was not the only firm to suspend trading on its open-ended property fund, following the EU referendum.

After the Brexit vote, fear of a wave of redemptions also forced several other asset managers – notably Aviva Investors and M&G – to suspend trading on their funds.

Last month, Aviva Investors has warned investors it is likely to uphold the dealing suspension on its £1.6 billion Property Trust until the first quarter of 2017.

Meanwhile, Aberdeen Asset Management temporarily suspended redemptions on its UK Property fund to give investors the chance to consider if they wanted to redeem at a 17% discount. 

In August, the firm reduced the exit charge to 5%, citing evidence of calm and order being restored to the market. 

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