Threadneedle Property Unit Trust
Responsible Investment Update
Important announcement regarding Net Zero Carbon and SFDR:
We are delighted to share that this process is now complete, and the Fund, and its Luxembourg Feeder SA SICAV-SIF (‘Feeder Fund’), have made formal commitments to promote Environmental Characteristics as defined under the SFDR, which can be summarised as follows:
- In order to achieve net zero operational carbon emissions from its property portfolio by 2040 or sooner, the Fund aims to create sustainable property assets that are environmentally optimized by promoting environmental characteristics through asset selection and active asset management.
- In particular, the Fund has and will continue to (1) improve the environmental performance potential of its property assets, and (2) lower the energy use and carbon intensity of its property assets.
These changes reflect the property fund management activities already being undertaken by the Investment Advisor, and they do not constitute a material change to the Fund’s stated objective to provide Unitholders with an indirect investment exposure to a diversified portfolio of property assets in the United Kingdom. Instead, in seeking to achieve this objective, the Prospectus now clarifies that the Manager and the Investment Advisor adopt an investment approach which aims to deliver positive financial, environmental and social outcomes.
This is reflected in the key performance indicators which the Manager intends to monitor as part of its role:
- Financial – financial outcomes are measured with reference to total return and income distribution performance in relation to the Fund’s financial benchmark (currently the MSCI/AREF UK All Balanced Open-Ended Property Fund Index).
- Environmental – environmental outcomes are measured with reference to climate impact. The Fund aims to improve the environmental performance potential and lower the energy use and carbon intensity of its assets.
- Social – social outcomes may be measured with reference to the qualitative impact that (i) major refurbishment projects may have on tenants and (ii) any other relevant property management initiatives. The Fund aims to record the social value of these initiatives at asset level. The Fund may continue to seek other measures to assess improvements in social outcomes.
This responsible investment approach has now been formalised within the Fund and the Feeder Fund Prospectus’, and reporting against these metrics is already included within the standard investor reports. These changes are consistent with the core roles Columbia Threadneedle plays as responsible partner, investor, employer and citizen, and ensure the Fund and the Feeder Fund are best placed to continue to deliver for investors over the long term.
Fund Objective & Policy
Key Facts
Structure | Jersey Property Unit Trust | Approach | Core |
---|---|---|---|
Dealing |
Monthly | Asset Exposure | Property, cash, indirect |
Launch Date | March 1999 | Lead Portfolio Manager | James Coke |
Investment Philosophy
Threadneedle Property Unit Trust (TPUT) Investment Advisor’s Annual Investor Presentation
We recently hosted the annual investor presentation, where James Coke, Fund Manager of TPUT, reflected on current and anticipated market dynamics and offered a view in support of UK real estate looking forward.
There was also an update on decarbonisation opportunities, and how the Fund has enshrined longstanding Environmental, Social, and Governance principals within its Prospectus, encompassing both disclosures under Article 8 of the EU SFDR and a formal commitment to achieve operational Net Zero carbon emissions by 2040.
Literature
Fund Manager
James Coke is Co-Head of Institutional, UK Real Estate at Columbia Threadneedle Investments. He took up this role in October 2020 and has joint responsibility for the investment performance and strategy of our UK institutional property mandates. He is also portfolio manager for the Threadneedle Property Unit Trust.
Before joining the company, James worked in the UK Capital Markets team at JLL, advising a range of institutional clients on property acquisitions and disposals throughout the UK.
James has a BSc (Hons) in Land Management from the University of Reading. He is also a member of the Royal Institution of Chartered Surveyors.
Legal and Regulatory Disclosures
Insights
2024 Global Real Estate Outlook
Targeting relative value in listed real estate
The resurgence of Europe’s luxury high streets is gathering momentum
You may also like
About Us
Millions of people around the world rely on Columbia Threadneedle Investments to manage their money. We look after investments for individual investors, financial advisers and wealth managers, as well as insurance firms, pension funds and other institutions.
Investment options
We offer a broad range of actively managed investment strategies and solutions covering global, regional and domestic markets and asset classes.
Responsible Business
As a leading global asset management group, Columbia Threadneedle Investments aims to deliver positive outcomes that meet the needs of our stakeholders and we commit to always act responsibly, transparently and in the best interests of those who trust us to manage their investments.
Investment Risk
The value of investments can fall as well as rise and investors might not get back the sum originally invested.
Property Liquidity – It may be difficult or impossible to realise assets of the Company because the underlying property may not be readily saleable.
Property Valuation – The value of a property is a matter of a valuer’s opinion and the true value may not be recognised until the property is sold. Should the Standing Independent Valuer express material uncertainty regarding the value of one or more immovables under management and that material uncertainty applies to 20% or more of the value of the Company, it may be necessary to temporarily suspend dealing.
Property Market Risk – The performance of the fund would be adversely affected by a downturn in the Property market in terms of capital value or a weakening of rental yields.
IMPORTANT INFORMATION
FOR PROFESSIONAL INVESTORS ONLY (not to be used with or passed on to any third party). Your capital is at risk. Threadneedle Property Unit Trust is an unclassified open-ended unit trust domiciled in Jersey, governed by a fourth amended and restated trust instrument under Jersey law dated 4 December 2014 (as may be amended from time to time) made between the Manager and the Trustees (the “Trust Instrument”). This Trust is not registered for sale outside the United Kingdom and may not be offered to the public in any other country. In the UK, the Trust is an unregulated collective investment scheme for the purposes of Section 238 of the Financial Services and Markets Act 2000. Accordingly, this document must not be communicated to retail persons in the UK but may only be communicated to persons described in the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions Order) 2001 and to persons whom units are permitted to be promoted in accordance with the FCA’s Conduct of Business rules. Approved for UK purposes by Threadneedle Asset Management Limited and Threadneedle Portfolio Services Limited. Authorised and regulated by the Financial Conduct Authority. Investors are advised that the protections afforded by the UK regulatory system may not apply to an investment in the Fund and compensation will not be available under the UK Financial Services Compensation Scheme.
In Jersey, the Trust, which is regulated by the Jersey Financial Services Commission, is treated as an unclassified fund for the purposes of the Collective Investment Funds (Jersey) Law 1998. Units in the Trust may only be promoted in accordance with the aforementioned legislation. This document should not be circulated to private investors.
This document does not constitute or form any part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase, any units nor shall it or the fact of its distribution form the basis of, or be relied on in connection with any contract therefore. Recipients of this document who intend to apply for units are reminded that any such application may be made solely on the basis of the information and opinions contained in the prospectus and seek independent taxation advice. This material should not be considered as an offer, solicitation, advice or an investment recommendation. This communication is valid at the date of publication and may be subject to change without notice. Information from external sources is considered reliable but there is no guarantee as to its accuracy or completeness Issued by Threadneedle Investments (Channel Islands) Limited Registered No. 82489. Registered in Jersey.
Registered Office: IFC 1, The Esplanade, St Helier, Jersey JE1 4BP.
Regulated by the Jersey Financial Services Commission.In the UK issued by Threadneedle Asset Management Limited. Registered in England and Wales, Registered No. 573204, Cannon Place, 78 Cannon Street, London EC4N 6AG, United Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority.
Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.