Threadneedle Property Unit Trust

We are delighted to share that this process is now complete, and the Fund, and its Luxembourg Feeder SA SICAV-SIF (‘Feeder Fund’), have made formal commitments to promote Environmental Characteristics as defined under the SFDR, which can be summarised as follows:

• In order to achieve net zero operational carbon emissions from its property portfolio by 2040 or sooner, the Fund aims to create sustainable property assets that are environmentally optimized by promoting environmental characteristics through asset selection and active asset management.
• In particular, the Fund has and will continue to (1) improve the environmental performance potential of its property assets, and (2) lower the energy use and carbon intensity of its property assets.

These changes reflect the property fund management activities already being undertaken by the Investment Advisor, and they do not constitute a material change to the Fund’s stated objective to provide Unitholders with an indirect investment exposure to a diversified portfolio of property assets in the United Kingdom. Instead, in seeking to achieve this objective, the Prospectus now clarifies that the Manager and the Investment Advisor adopt an investment approach which aims to deliver positive financial, environmental and social outcomes.

This is reflected in the key performance indicators which the Manager intends to monitor as part of its role:

• Financial – financial outcomes are measured with reference to total return and income distribution performance in relation to the Fund’s financial benchmark (currently the MSCI/AREF UK All Balanced Open-Ended Property Fund Index).
• Environmental – environmental outcomes are measured with reference to climate impact. The Fund aims to improve the environmental performance potential and lower the energy use and carbon intensity of its assets.
• Social – social outcomes may be measured with reference to the qualitative impact that (i) major refurbishment projects may have on tenants and (ii) any other relevant property management initiatives. The Fund aims to record the social value of these initiatives at asset level. The Fund may continue to seek other measures to assess improvements in social outcomes.

This responsible investment approach has now been formalised within the Fund and the Feeder Fund Prospectus’, and reporting against these metrics is already included within the standard investor reports. These changes are consistent with the core roles Columbia Threadneedle plays as responsible partner, investor, employer and citizen, and ensure the Fund and the Feeder Fund are best placed to continue to deliver for investors over the long term.