Columbia Threadneedle to reopen UK Paif and feeder fund

It has been suspended since October due to liquidity issues


Five months on from gating the strategy, the £358m Columbia Threadneedle (CT) UK Property Authorised Investment and feeder fund (Paif) will reopen for dealing at noon on 28 February.

The asset manager prevented investors from buying and selling the fund on 10 October after a wave of redemption requests depleted cash levels to the point where the strategy could not fulfil further withdrawals.

Since the suspension of dealing, CT has sold assets in the fund, which invests in commercial properties, in order to meet future redemptions.

The asset manager said the decision to gate the Paif was taken to ensure the fair treatment of all investors in the fund, whether withdrawing their money or investing for the longer term.

Portfolio manager Gerry Frewin said: “We are pleased to reopen the fund following a successful asset sale and continue to believe in the fundamentals commercial property provides to long-term investors in a balanced and diversified portfolio.

“The CT UK Paif continues to be a well-diversified portfolio of commercial UK property, with an overweight position to the buoyant warehouse sector. Following the exceptional circumstances last year, it has always been our priority to reopen the fund as soon as possible.”

CT is not alone in suffering liquidity issues in its UK property funds in recent months.

Similar measures to address withdrawals have been taken on strategies managed by M&G, Blackrock and Schroders.

In the aftermath of the mini budget crisis in September, many pension schemes sought to re-evaluate more illiquid investments, causing a rush of redemption requests in a number of UK property funds.

See also: Can property trusts replicate the 2009 discount-to-premium rebound?

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