Change to redemption notice periods for property funds

17 October 2022

From 17 October 2022, until further notice, CCLA will be exercising the discretion available to us to extend the redemption notice period from the current 90 days to six months with immediate effect on its COIF Charities Property Fund, CBF Church of England Property Fund and the Local Authorities’ Property Fund.

While the funds continue to enjoy the support of a wide base of long-term investors with requests for redemptions still relatively low to date and the prevailing liquidity in the funds is appropriate, we believe that the degree of current uncertainty in the property market merits further caution.

Property as an asset class is illiquid and where we do sell properties, we want to be able to do this in an orderly fashion, focusing on those assets which we believe have become less attractive and less well placed to support the funds’ income and capital growth over the long term.

The exercise of our discretion to extend the redemption notice period therefore reflects our responsibility for managing the funds in a way which is fair to all investors. In the current market circumstances, there is a greater risk that continuing investors could be disadvantaged if we were obliged to dispose of properties at unattractive valuations in order to satisfy redemption requests. 

Any deals already in place will not be affected by this change.

If you have any questions regarding your holding in these funds, please contact our Client Services team on 0800 022 3505 or email clientservices@ccla.co.uk.