Columbia Threadneedle changes property funds’ pricing

Home-House-Monopoly-Money-Property-700x450.jpgColumbia Threadneedle Investments is follow other asset managers in changing pricing structures on its UK property funds from offer to bid.

Changes will affect Threadneedle UK Property Authorised Investment fund and the UK Property Authorised trust.

Last week, Standard Life Investments, Henderson Global Investors and M&G Investments changed pricing structures at their property funds due to outflows.

The changes in pricing effectively shift costs to those investors selling out of the funds, rather than spreading them evenly across investors.

Columbia Threadneedle Investment managing director of property Don Jordison says: “We aim to ensure the fair treatment of all our investors whether they are transacting now or investing for the longer-term.

“We have not been immune to the trend of retail outflows from the sector and this decision was made with the aim of preventing any investors being disadvantaged by the negative impact of transaction costs.  At Columbia Threadneedle we believe property should always form a part of a balanced portfolio.”

Morningstar Investment Management this week announced it had exited UK property in its actively managed portfolios due to increasing liquidity risks.

Miton multi-asset manager David Jane says he is investing in UK property through REITs to avoid liquidity risk.