UK Property Fund Changes

Notice of Fund reopening for dealing

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

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

Columbia Threadneedle is pleased to announce that it lifted the temporary dealing suspension on the Threadneedle UK Property Authorised Investment Fund (Threadneedle PAIF) and its Feeder Fund, the Threadneedle UK Property Authorised Trust (together ‘the Fund’) with effect from the valuation point on 17 September 2020.

Dealing in the Threadneedle PAIF was temporarily suspended on 18 March 2020 following the deployment of a ‘material uncertainty clause’ by the Fund’s independent property valuer, CBRE. This meant the valuer was unable to provide an appropriate level of certainty regarding the valuation of the Fund’s assets in the market environment at the time. The decision to suspend dealing in the Fund was aimed at preventing any unitholders being disadvantaged by those redeeming from or investing in the Fund at an uncertain price and was consistent with the approach taken across the investment industry.

On 9 September 2020, CBRE confirmed that it has removed the material uncertainty clause from the property assets held by the Fund. As a result the Threadneedle PAIF will reopen for dealing on 17 September.

This action has been taken with the agreement of Citibank Europe Plc, UK Branch, the depositary of both funds, and the FCA has been notified.

Gerry Frewin, fund manager of the Threadneedle UK Property Authorised Investment Fund, said “We are delighted to re-open dealing in the Fund from 17 September 2020. We appreciate that suspending dealings in the Fund may have caused some inconvenience for our clients, however the decision to suspend dealing meant that no unitholders would be disadvantaged and ensured the fair treatment of all investors. We thank our clients for their understanding during this unprecedented time.”

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Q&A

The Threadneedle PAIF and its Feeder Fund invest in physical UK commercial property such as warehouses, offices and retail around the UK. Columbia Threadneedle continues to believe real estate should form a part of a balanced portfolio for a long-term investor.

18 March 2020: Notice of temporary dealing suspension

Please note the suspension was last reviewed on 19 August 2020.

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.

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Q&A

Retail UK Property Funds

1 April 2019: Changes to our property funds’ pricing structure

From 12 April 2019 the Threadneedle UK Property Authorised Investment Fund and the Threadneedle UK Property Authorised Trust will change from being dual priced on a quoted-spread basis to being dual priced on a full-spread basis. Further information can be found below.

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Investor letter

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.

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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%.

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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

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.

Alternatively please contact your financial adviser. If you do not have a financial adviser you can find one in your area by visiting www.unbiased.co.uk – please note that we do not endorse this site or the advisers found on it.

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