• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      Sustainable Investment Festival 2021

      The Sustainable Investment Festival will run online from 22-25 June and will include thought-provoking presentations from renowned keynote speakers, innovative breakout events and sessions specifically tailored to meet the information needs of fund selectors, financial advisers, pension consultants, trustees and scheme managers.

      • Date: 22 Jun 2021
      • Online, Online
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Property

St. James's Place and Columbia Threadneedle property funds emerge from suspension

St. James's Place and Columbia Threadneedle property funds emerge from suspension
  • Ellie Duncan
  • 10 September 2020
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

St. James's Place and Columbia Threadneedle have already opted to reopen their UK property funds after independent valuers were given the green light to remove Material Uncertainty Clauses (MUCs) yesterday (9 September), while other fund houses have told investors they need more time to assess the risks of ending their six-month suspensions. 

St. James's Place has lifted the suspension on its range of three UK commercial property funds, the SJP Property Unit Trust and the SJP Property Life and Property Pension funds, while Columbia Threadneedle has announced it is to reopen its £1bn UK Property Authorised Investment Fund (PAIF) and feeder fund on 17 September.

Related articles

  • Columbia Threadneedle to reopen property funds on 17 September
  • Columbia Threadneedle suspends dealing in retail property fund
  • Janus Henderson and Kames Capital suspend property funds; 'almost certain' all will follow
  • UK property funds freeze €17bn

The Royal Institution of Chartered Surveyors (RICS) cleared the way for some property funds to reopen after it recommended a "general lifting" of material valuation uncertainty on the valuation of "all UK real estate", with exception of "some assets valued with reference to trading potential" on 9 September.

They will need to review their portfolios and make sure the bulk of them are now in scope to be accurately valued as a starting point."

However, Adrian Lowcock, head of personal investing at Willis Owen, warned not to "expect to see a rush to reopen from many providers" due to the timing of Brexit and a resurgence in cases of Covid-19.

"They will need to review their portfolios and make sure the bulk of them are now in scope to be accurately valued as a starting point," he said.

Among those providers that have so far chosen to keep the suspension of their property funds in place are Aberdeen Standard Investments (ASI), Janus Henderson and LGIM.

A spokesperson for ASI welcomed the removal of the MUCs but confirmed that it does not anticipate reopening its UK Property fund before its next valuation on 30 September, adding "the most recent valuation for the fund was 'uncertain' at the time and will require to be revisited in the normal course before any fund trading could conceivably re-commence".

The Janus Henderson UK Property PAIF and its feeder fund will also remain suspended "until further notice" following a review by the board of Henderson Investment Funds, although a further update will be provided within the next 28 days, "or sooner should the situation change."

In its statement, Janus Henderson revealed that the amount of the fund's portfolio that is no longer subject to material uncertainty is 73% based on end-of-July property valuations.

Meanwhile, LGIM has revealed that a single asset worth 1.7% of its Legal & General UK Property fund still has a MUC in place. 

A spokesperson from the group said: "Whilst there is now a higher degree of confidence from the independent valuers for most of the assets in the Legal & General UK Property fund and the Legal & General UK Property Feeder fund, the reopening can only take place once the funds' authorised fund manager is confident that doing so is in the best interests of investors.

"With the best interests of investors front of mind, the board is reviewing the situation in respect of the funds and will be communicating with investors in due course."

Lowcock added: "Many funds are not sitting on high cash balances at the moment, and they will be desperate to avoid a scenario where they have to close again if redemptions are too high.

"Therefore, we don't think the situation has been resolved for investors as yet, and it could take weeks, if not months, for funds to reopen."

Managing director of the Association of Real Estate Funds Paul Richards also welcomed the lifting of the material uncertainty clause "as one step on the path back to a normally functioning commercial property market".

But he said: "Fund suspension is not undertaken lightly and is done in the best interest of savers and investors. It is for individual funds to decide when to reopen having considered their investors' needs and their liquidity position."

In a statement, SJP said the removal of this clause meant it was "now able to value, with confidence, the properties held within the St. James's Place UK Commercial Property funds due to increased transactional evidence" and that the first client transactions will take place today (10 September).

Gerry Frewin, fund manager for the Threadneedle PAIF, claimed that the longer-term case for property remains compelling on an income and portfolio diversification basis as capital volatility has been easing.

Subscribe to International Investment's free, twice-daily, newsletter

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Property
  • St. James's Place
  • Columbia Threadneedle
  • SJP Property Life
  • Royal Institution of Chartered Surveyors
  • RICS
  • Adrian Lowcock
  • Brexit
  • Aberdeen Standard Investments
  • Janus Henderson
  • Janus Henderson UK Property PAIF
  • Gerry Frewin
  • Commercial Property
  • Property

More on Property

WHIreland gains IPSX approval to join real estate stock exchange

  • Property
  • 16 September 2020
Columbia Threadneedle to reopen property funds on 17 September

  • Property
  • 09 September 2020
UK removes 'valuation uncertainty' clause from frozen property funds

  • Property
  • 09 September 2020
Nedgroup Investments launches two property fund share classes

  • Property
  • 06 August 2020
European real estate head warns FCA - 'don't mislead investors'

  • Property
  • 04 August 2020
Back to Top

Most read

First digital only bank in UAE set to go live
First digital only bank in UAE set to go live
Standard Chartered names Singapore heavy hitter for global role
Standard Chartered names Singapore heavy hitter for global role
UK regulator bans financial adviser for dishonesty
UK regulator bans financial adviser for dishonesty
Bitcoin hits record high on cusp of Coinbase IPO
Bitcoin hits record high on cusp of Coinbase IPO
DeVere UK and Fidelius enter strategic partnership
DeVere UK and Fidelius enter strategic partnership
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading