LONDON, July 7 (Reuters) - Investment manager CCLA has cut the price of three institutional property funds holding a combined 1.3 billion pounds ($1.69 billion) in assets by 4.5 percent after Britain’s vote to leave the European Union.
The firm, which invests money for a range of charities, religious groups and the public sector, made the change last week in response to market uncertainty after the vote, Chief Investment Officer James Bevan told Reuters on Thursday.
“We felt that the...adjustment was an appropriate and proportionate response to the heightened risk of uncertainty, but not more than that,” he said.
“We haven’t yet got any evidence at all in terms of transactional values or rental yields, which are the two fundamental drivers for revaluations.”
The three funds were the CCLA Local Authorities Property Fund, which had 617.5 million pounds in property at end-June; the CCLA COIF Charities Property fund, with 541 million pounds; and the CCLA CBF CoE Property fund, with 181 million pounds. ($1 = 0.7683 pounds) (Reporting by Simon Jessop; editing by Carolyn Cohn)