Fund Management

Another Investment House Suspends Trading In UK Property Fund

Amisha Mehta, Deputy Editor, London, 7 July 2016

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Columbia Threadneedle Investments is taking the action to allow an orderly sale of assets by the fund.

Columbia Threadneedle Investments has temporarily suspended dealing in the Threadneedle UK Property Authorised Investment Fund and its feeder fund, the Threadneedle UK Property Authorised Trust, after a wave of outflows.

The suspension comes shortly after M&G Investments paused trading in the shares of its UK commercial property portfolio, citing uncertainty in the market following last month's referendum result.

Columbia Threadneedle also attributed the move to Brexit uncertainties, explaining that a suspension was necessary to allow enough time for the “orderly” sale of assets, and to protect the interests of investors. So far, these requests to sell shares have been met from the cash balance retained within the Threadneedle PAIF. 

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. In order to mitigate risk, the firm says, the fund is highly diversified by sector, geography and volume of properties and tenancies. It has minimal exposure to large central London properties where international demand is focused, particularly offices in the City of London.

“We continue to believe property should always form a part of a balanced portfolio for a long-term investor,” said Columbia Threadneedle.

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