UK PROPERTY FUND CHANGES

There have been a number of recent changes to our UK Property Fund range which impact new and existing investors as outlined below.

➢ 26 March 2020: Notice of temporary dealing suspension

Important information about the Low-Carbon Workplace (LCW) Fund

To protect the interests of investors in the Fund, Columbia Threadneedle Investments has temporarily suspended dealing in the Low-Carbon Workplace LP and Threadneedle Low-Carbon Workplace Trust collectively (“the Fund”) with effect from 2pm on 24 March 2020. This decision has been taken by Threadneedle Portfolio Services Limited as manager of the LP (following consultation with the General Partner) and Threadneedle Investments (Channel Islands) Limited as manager of the Trust (following consultation with the trustee). The Jersey Financial Services Commission (JFSC) and the Financial Conduct Authority (FCA) have been informed.

Columbia Threadneedle aims to ensure the fair treatment of all investors in our funds, whether they are transacting now or investing for the longer term.

The Fund has been suspended due to the fact that our independent property valuer, JLL, has deployed a ‘market uncertainty clause’, which means that they are unable to provide an appropriate level of certainty regarding the valuation of the Fund’s assets in the current exceptional market environment. This is consistent with the approach being taken across the broader industry. In response, we have suspended dealings in the Fund until such time that a more certain valuation can be ascertained.

The situation is being closely monitored and the decision to suspend will be reviewed regularly.

Sandy Wilson, fund manager for the Low Carbon Workplace (LCW) Fund, said: “We appreciate that suspending dealings in the Low-Carbon Workplace LP and its feeder, Threadneedle Low-Carbon Workplace Trust, may cause some inconvenience for our clients. However, with the lack of certainty surrounding the valuation of the assets in the fund’s assets this decision means that no unitholders will be disadvantaged, and we can ensure the fair treatment of all. We believe this is an appropriate measure to take during this period of exceptional uncertainty and we will review this decision regularly.”

Low-Carbon Workplace LP Fund invests in physical UK commercial property. We continue to believe property should form a part of a balanced portfolio for a long-term investor.

We thank our clients for their understanding and patience and will keep them informed via our website www.columbiathreadneedle.com/changes.

Q&A


➢ 26 March 2020: Notice of temporary dealing suspension

Important information about the Threadneedle Property Unit Trust (“the Fund”).

To protect the interests of investors in the Fund, Columbia Threadneedle Investments has temporarily suspended calculation of the Net Asset Value and dealing in Threadneedle Property Unit Trust (“the Fund”) with effect from 2pm on 24 March 2020. This means unitholders are temporarily unable to buy or sell units in the Fund. Any requests to transact received following suspension coming into effect will not been actioned and will not be accepted or queued. This decision has been taken by the Threadneedle Investments (Channel Islands) Board in consultation with the Trustees. The Jersey Financial Services Commission (JFSC) has been informed.

Columbia Threadneedle aims to ensure the fair treatment of all investors in our funds, whether they are transacting now or investing for the longer term.

Threadneedle Property Unit Trust has been suspended due to the fact that our independent property valuer, CBRE, has deployed a ‘market uncertainty clause’, which means that they are unable to provide an appropriate level of certainty regarding the valuation of the Fund’s assets in the current exceptional market environment. This is consistent with the approach being taken across the broader industry. In response, we have suspended Threadneedle Property Unit Trust until such time that a more certain valuation can be ascertained.

The situation is being closely monitored and the decision to suspend will be reviewed regularly.

Chris Morrogh, fund manager for the Threadneedle Property Unit Trust, said: “We appreciate that suspending Threadneedle Property Unit Trust may cause some inconvenience for our clients. However, our objective is to protect the interests of investors in the Fund by ensuring the fair treatment of all, whether they are transacting now or investing for the longer term. Our decision to suspend dealing will prevent any unitholders being disadvantaged as a result of those redeeming from the Fund or newly investing in it at an uncertain price. We believe this is an appropriate measure to take to manage the Fund during this period of exceptional uncertainty and we are committed to reviewing our decision regularly.”

Threadneedle Property Unit Trust invests in physical UK commercial property. We continue to believe property should form a part of a balanced portfolio for a long-term investor.

We thank our clients for their understanding and patience and will keep them informed via our website www.columbiathreadneedle.com/changes.

Q&A


➢ 20 March 2020: Notice of temporary dealing suspension

Important information about the TPEN Property Fund (“the Fund”).

To protect the interests of investors in the Fund, Columbia Threadneedle Investments has temporarily suspended dealing in the Threadneedle Pensions (TPEN) Property Fund (“the Fund”) from 12 noon on 20 March 2020. This means policyholders are temporarily unable to buy or sell shares in the Fund. Any requests to transact after the 11am dealing cut-off on 19 March have not been actioned and new requests will not be accepted. This decision has been taken by the TPEN Board. The Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA) have been informed.

Columbia Threadneedle aims to ensure the fair treatment of all investors in our funds, whether they are transacting now or investing for the longer term.

We have suspended the TPEN Property Fund due to the fact that our independent property valuer, CBRE, has deployed a ‘market uncertainty clause’, which means that they are unable to provide an accurate valuation of the Fund’s assets in the current exceptional market environment. This is consistent with the approach being taken across the broader industry. In response, we have suspended the TPEN Property Fund until such time that an accurate valuation can be ascertained.

We are monitoring the situation closely and will formally review this decision regularly.

Nathan Hargreaves, fund manager for the TPEN Property Fund, said: “We appreciate that suspending the TPEN Property Fund may cause some inconvenience for our pension clients. Our objective is to protect the interests of investors in the Fund by ensuring the fair treatment of all, whether they are transacting now or investing for the longer term. Our decision to suspend dealing will prevent any policyholders being disadvantaged as a result of those redeeming from the Fund or newly investing in it at an inaccurate price. We believe this is an appropriate measure to take to manage the Fund during this period of exceptional uncertainty and we are committed to reviewing our decision regularly.”

The TPEN Property Fund invests in physical UK commercial property. We continue to believe property should form a part of a balanced portfolio for a long-term investor.

We thank our clients for their understanding and patience and will keep them informed via our website www.columbiathreadneedle.com/changes.

Q&A


➢ 18 March 2020: Notice of temporary dealing suspension

Important information about the Threadneedle UK Property Authorised Investment Fund (Threadneedle PAIF) and its Feeder Fund, Threadneedle UK Property Authorised Trust (Feeder Fund) (“the Fund”).

To protect the interests of investors in the funds, Columbia Threadneedle Investments has temporarily suspended dealing in the Threadneedle UK Property Authorised Investment Fund (Threadneedle PAIF) and the Threadneedle UK Property Authorised Trust (Feeder Fund) from 12 noon on 18 March 2020. This means investors are temporarily unable to buy or sell shares in the Threadneedle PAIF or its Feeder Fund. Any requests to transact after 12 noon on 17 March have not been actioned and new requests will not be accepted. We have taken this action following discussions with the funds’ depositary, Citibank Europe Plc, UK Branch. The Financial Conduct Authority (FCA) has been notified.

Columbia Threadneedle aims to ensure the fair treatment of all investors in our funds, whether they are transacting now or investing for the longer-term. The suspension of the Threadneedle PAIF is consistent with the FCA’s upcoming rules which require a fund to suspend if more than 20% of its assets cannot be accurately valued.

The Threadneedle PAIF’s independent property valuer, CBRE, has deployed a ‘market uncertainty clause’ which means that they are unable to provide an accurate valuation of the PAIF’s assets in the current exceptional market environment. This is consistent with the approach being taken across the broader industry. In response, we have suspended the Threadneedle PAIF and its Feeder Fund until such time that an accurate valuation can be ascertained. We are monitoring the situation closely and will formally review this decision every 28 days with our depositary.

Gerry Frewin, fund manager for the Threadneedle UK Property Authorised Investment Fund, said: “Our objective is to protect the interests of investors in the fund, by always ensuring the fair treatment of all investors, whether they are transacting now or investing for the longer-term. While we appreciate this may cause some inconvenience, our decision to suspend dealing will prevent any investors being disadvantaged as a result of those redeeming from the fund or investing new money into the fund at an inaccurate price. Consistent with FCA guidance, we believe this is an appropriate measure to take to manage the fund during this period of exceptional uncertainty. We thank our investors for their patience and will continue to provide updates to keep you informed.”

The Threadneedle PAIF and its Feeder Fund invest in physical UK commercial property such as warehouses, shopping centres, high street shops and offices around the UK. We continue to believe property should form a part of a balanced portfolio for a long term investor.

We thank our clients for their understanding and patience and will keep them informed via our website www.columbiathreadneedle.com/paif.

Q&A


➢ Retail UK Property Funds

  • Threadneedle UK Property Authorised Investment Fund (Threadneedle PAIF)
  • Threadneedle UK Property Authorised Trust (Threadneedle PAIF Feeder Fund)
  • Threadneedle UK Property Trust (closed)

➢ 13 December 2018: Property pricing change

On 13 December 2018, Columbia Threadneedle Investments changed the pricing of the dual-priced Threadneedle UK Property Authorised Investment Fund and the Threadneedle UK Property Authorised Investment Trust from being priced on an offer basis to being priced on a bid basis.

This is to reflect the impact of transaction costs given market uncertainty and ensures the fair treatment of all our clients.

Q&A


➢ 23 January 2017: Threadneedle Retail UK Property Funds pricing changed to 'Offer'

We have changed the pricing basis on the Threadneedle UK Property Authorised Investment Fund and the Threadneedle UK Property Authorised Trust from Bid to Offer with effect from the 12 noon valuation point on 23 January 2016. The decision for the change is a result of the Fund experiencing a continued trend of net inflows and will result in a positive performance impact on the Funds of approximately 5%.

Property Pricing Q and A: 23 January 2017


➢ 20 May 2016: Change to pricing basis

On 20 May 2016 Columbia Threadneedle Investments changed the pricing of the dual-priced Threadneedle PAIF and the Threadneedle PAIF Feeder Fund from being priced on an offer basis to being priced on a bid basis.

Find out more


➢ 14 May 2016: PAIF conversion

The Threadneedle UK Property Trust was converted into the Threadneedle PAIF and the associated Threadneedle PAIF Feeder Fund was launched on 14 May 2016.

Find out more


Further information

If have any further questions, please call us on 0800 953 0134*. Our team is available from 8:00 am to 6:00 pm, Monday to Friday.

*calls may be recorded