It will lift the trading suspension on the Threadneedle UK Property Authorised Investment Fund on 26 September, at the 12 noon valuation point.
This follows Canada Life’s decision to remove the suspension of its own fund last week. A whole series of funds were suspended after the EU referendum.
Don Jordison, managing director of property, Columbia Threadneedle Investments, said: “In the short period following the referendum we saw animal spirits drive unprecedented levels of redemptions from daily dealt open-ended property funds. Much of the earlier commentary now appears slightly irrational and more informed reflection has settled the market.
“Any effects of the Brexit vote on the overall UK economy – negative or otherwise – will take many months if not years to transpire and some time after that for the property market. In the current climate of low growth and low returns from other asset classes, and with the UK property market yielding 5%, it is our view that UK property offers a significant in-built risk premium for long-term investors.”
Columbia Threadneedle stated today: “Trading in the fund was suspended on 6 July 2016 in order to protect existing investors in the wake of market instability following the UK’s decision to leave the European Union, which led to significant outflows in retail property funds. From that time our priority has been to reopen the fund as soon as possible for our customers.”
Since July the fund has completed, exchanged or agreed to sell 25 properties totalling £167m across all UK regions and property types, with no forced sales, the company reported.
According to Columbia Threadneedle bosses, the prices achieved were in aggregate less than 1% down from the last independent valuation prior to the referendum. The fund will open without redemption penalties, and will return to standard monthly valuations, they said.
Alastair Caw, head of UK wholesale, Columbia Threadneedle Investments, said: “We are pleased to be able to reopen the Threadneedle UK Property Authorised Investment Fund and provide access to the asset class for our investors again. Our property team has worked tirelessly to ensure we provide appropriate liquidity within the fund to remove the suspension as quickly as possible, demonstrating our ability and commitment to ensuring the best interests of our customers. Encouragingly, asset disposals made during the process have been at or very close to pre-referendum valuations. Our team are looking to build the portfolio scale from here with no change in our long standing and well understood approach, managing a well diversified portfolio by region and industry and delivering good returns for our clients.”