COIF CHARITIES PROPERTY FUND ANNUAL REPORT AND FINANCIAL STATEMENTS Year ended 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **CONTENTS** |Report of the Board|03| |---|---| |Report of the Investment Manager*|05| |Independent Auditors’ Report|12| |Report of the Valuers|16| |Summary risk indicator|18| |Comparative table|19| |Portfolio analysis|20| |Portfolio statement*|21| |Property portfolio|22| |Statement of total return**|37| |Statement of change in net assets attributable to Unitholders**|37| |Balance sheet**|38| |Cash flow statement**|39| |Notes to the financial statements**|40| |Distribution table**|53| |Statement of Board, Trustee and Manager responsibilities|54| |Statement of Depositary responsibilities and Report of the Depositary|58| |AIFMD disclosures|59| |Directory*|60| |*Collectively, these comprise the Investment Manager’s Report.|| **Audited. References to “CCLA” refer to The CCLA Group, comprising CCLA Investment Management Limited and CCLA Fund Managers Limited. ## **Disability Discrimination Act 1995** Extracts from the Annual Report and Financial Statements are available in large print and audio formats. Annual Report and Financial Statements 31 December 2020 02 **COIF CHARITIES PROPERTY FUND** ## **REPORT OF THE BOARD for the year ended 31 December 2020** On behalf of the Board, I have pleasure in presenting the Annual Report and Financial Statements of the COIF Charities Property Fund (the Fund), which includes a separate report from CCLA Fund Managers Limited (the Manager) as Manager of the Fund. ## **Structure and management of the Fund** The Fund is a Common Investment Fund and was established in 2002. The Fund is governed by a scheme of the Charity Commission dated 12 July 2002 and as modified by a scheme dated 13 May 2009 and a scheme effective on 21 July 2014 and as amended by resolutions of the trustees of the Fund passed under Section 280 of the Charities Act 2011 on 21 July 2014, 22 July 2014 and 29 July 2014 and by an order dated 9 October 2014 and an order dated 19 October 2016 (the Scheme). The day to day management of the Fund is delegated to the Manager by the Board which is also responsible for appointing the Manager, setting the investment policy and determining the criteria and methods of evaluating the performance. The Board also appoints the Auditors and the Trustee. The Trustee and Depositary is HSBC Bank plc who is responsible for the supervision and oversight of the Manager’s compliance with the Scheme and for the custody and safekeeping of the assets. The division between management and trustee functions provides an additional layer of protection for Unitholders. The Manager is responsible for management and the administration of the Fund, including marketing the Fund. ## **Investment objective** The Fund aims to provide investors with a high level of income and long-term capital appreciation. ## **Investment policy** The Fund is holding an actively managed, diversified portfolio of UK commercial property. It is managed in accordance with the policies of the Church of England’s Ethical Investment Advisory Group (EIAG). The Fund invests principally in direct commercial property assets in the UK. It may also invest in other property assets and indirectly, including listed securities and unlisted property funds. Whilst maintaining a full exposure to the UK property sector, indirect investments can assist in managing portfolio diversification and fund liquidity. The Manager operates indirect exposure limits of no more than 5% in any single property collective investment scheme, with a maximum aggregate exposure of 15%. Similar thresholds apply to securities in property companies and joint ventures. ## **Benchmark** The Fund’s benchmark is the MSCI/AREF UK Other Balanced Quarterly Property Fund Index. 03 Annual Report and Financial Statements 31 December 2020 COIF CHAIiITIES PKOPEIiTY FUND CCLA REPORT OF THE BOAIiD for the year ended 31 December 2020 Target investors The Fund is suitsblc for the long-term funds of any charity seeking exposure to UK commercial properry. Investors should note that the management of direct propcrty 15 outsidc the scope of the Financial Services and Markets Act 2000 las amended or ttplaced from time to time). Borrowing powerg Under the Scheme, the Manager may borrow a maximum of 25% of the ner asset Value of the Fund with the prior written consent of the Board. Responsible investment Achieving sustainable long-term return5 is a key objective of the Fund and an important consideration for ¢he Fund's unitholders.we link the financial assessnients of the investincnts made on beh￿[ of thc Unitholdcrs with bmader environnienral. social and governancc (ESG) issues.ThJ'$ recogni$cs the importance of ESG risks for pn)perry and is reflccted iii our investmen¢ processes and the day to day management of the Fund's property portfolio. CCLA'S Ethical & Responsible Investinent and Properry ieams work closely together with the BNP Paribas Real Estate sustainability function, to integrate ESG and performance monitoring. Further dctails on the Fund's Rcsponsible investment Policy and m2n28ement Information is available on reques¢ from the Manager. Review of inve$¢tnent activities and policie$ of the Fund The Board held quarterly meeting5 during the year to carry out its responsibiliry for the #pproval of investment strategy, for setting distribution policy. to review invL%tment diversification. suitability and risk 2nd to review the performance of the Fund. In addition, the Board monirored the 2dministration, expenses and pricing of the Fund. During the year, the Boird also met quarteAy with the Manager to review investincnts. transactions and policies of the Fund.The Manager's repoT¢. which appears later, provides further details. The Manager informed the Board of the need to suspend Ehe Fund and thc Board w2S agreeable.Thereaftcr. the Board made re￿Lar representations to the Managcr for the Fund to be ¥e-opencd at the earlicst opportunity subjcct to the intrrcsts of exisung investors bein8 safeguarded. Control$ and risk management During the year. the B02rd. a5515tcd by the M2nagcr, reviewed thc Fund's systems of internal control and risk report.The Board receives from the Mank￿r and reviews a formal risk m3n2gr￿¢nt report setting out the main risk5 facing the Fund, the contro]s in place to mitigate the risks and the asscssment of each risk aftcr applicition ofmitigating controLs. N Morecroft Ch￿rrnan 19 July 2021 04 Annual Report and Finlnciil Sratements 31 Decembcr 2020 **COIF CHARITIES PROPERTY FUND** ## **REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020** ## **Performance** Over the year the Fund achieved a total return after expenses of -0.54%. This compares with a return of -1.04% on the comparator benchmark. Initially capital values fell broadly across the sector as valuers struggled to understand the likely impact of the pandemic. As the uneven nature of the crisis became evident, sub-sector performances diverged, resulting in a substantial dispersion of returns by the end of the year. Well known challenges facing the retail sector meant that it was the weakest performer, in contrast distribution assets remained in strong demand and outperformed. Transaction volumes fell to historically low levels and one outcome of this was an early increase in valuer caution. Valuation weakness was greatest in the second quarter but even though the rate of decline later moderated, the decline was too substantial to be offset by the positive contribution from income, resulting in the negative total return for the period. Income payments to Unitholders totalled 5.2p, below that achieved during 2019 reflecting more provision for bad debts in the accounts due to rising rent arrears, and higher income expenses given rising vacancy levels and longer void periods in challenging occupier market conditions. Despite this, the Fund’s annual distribution yield of +4.70% was the highest recorded in the MSCI Balanced Property Funds Indices for 2020. The MSCI benchmark yield was +3.4%, whilst the MSCI UK All Property Fund Index yielded just +2.2%. The Unit price declined from 116.52p in December 2019 to 110.64p at the end of 2020, a capital return of -5.05%. The Fund’s performance record compared to the benchmark over longer term periods to the 31 December 2020 is shown in the table below. ## **Annualised total capital and income return** 1 year 3 years 5 years 10 years To 31 December 2020 % % % p.a. % p.a. **Performance against benchmark (after expenses) COIF Charities Property Fund** -0.54 +3.45 +4.45 +7.03 MSCI/AREF UK Other Balanced Quarterly Property Fund Index -1.04 +2.66 +4.40 +6.75 Source: CCLA. Past performance is not a reliable indicator of future results. Annual Report and Financial Statements 31 December 2020 05 **COIF CHARITIES PROPERTY FUND** ## **REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020** The underweight allocation to the Retail sector relative to the benchmark, with no shopping centres holdings, has supported performance this year. Another important contribution has resulted from the overweight exposure to the fundamentally stronger industrial and warehouse sub-sector. Offices have demonstrated a degree of resilience, but the performance of the alternative Other Property assets was disappointing, reflecting the impact of lock-down and social distancing on the hospitality and leisure sectors. Active management positions made a mixed contribution. Those where progress was secure were recognised in valuations but early-stage projects and less secure income streams, were treated with caution to reflect a perceived reduction in investor risk appetite and the drag on returns from high property income expenses and future capital expenditure. One positive of this, is that a good deal of potential value has yet to be reflected in the Fund’s valuation. Dealing in the Fund’s Units was suspended at the end of March due to material valuation uncertainty and for the protection of Unitholders. As a result, during that period no new investor capital was accepted. Net new money flow to the Fund prior to suspension was positive, amounting to £24.6m, however, this was largely reversed when dealings commenced in September, leaving a net gain of £3.6m. This modest improvement was more than offset by weaker valuations and capital expenditure on asset projects. The overall result was a decline in the Fund’s NAV to £584.5m compared to £615.6m twelve months ago. Investor outflows reduced portfolio liquidity to 4.1% from 7.1% at the half year. ## **Strategy** The strategy adopted in managing the COIF Charities Property Fund is asset focused. This investment approach is appropriate given the imperfect nature of property as an investment asset class and also reflects its long-term performance characteristics, which are driven by income. In turn, this is consistent with the Fund’s performance objectives and the income needs of Unitholders. A bottom-up investment process supports holding higher yielding investments and assets with shorter unexpired term leases, despite the risk of rising income expenses, helping to deliver attractive total performance and an above average income, whilst maintaining asset quality and avoiding the need to use gearing to boost returns. Although the strategy can be challenged in periods of uncertainty and lower appetite for risk, when additional income and capital expenditure can lag the recognition of income and valuation gains, a pro-active approach protects value and income, helping to manage risk whilst a dynamic portfolio structure means the Fund is well placed to navigate short term sector and asset challenges and reflect lasting change in the sector outlook. The portfolio has above index weightings in office and industrial assets and has a low exposure to a difficult retail sector. Reflecting the maturity of the investment cycle and the persistent uncertain backdrop, in particular for traditional sub-sectors, weightings 06 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020** have been growing in the alternative Other group of assets, with the objective of enhancing portfolio diversification, lengthening the lease expiry profile and building greater income resilience and growth prospects. ## **Market review** The year began with some optimism that reduced political uncertainty following a decisive General Election and a revival in economic activity fed through to the sector and bring an end to a run of valuation declines. However, these hopes were soon lessened by the Coronavirus global pandemic and the measures taken by governments to contain it. In particular, the effect of lock-down proved to be especially damaging for the retail, hospitality and leisure sectors. The prospects for rents, indeed for the continued viability of many tenants, became increasingly uncertain as business revenues and cash-flow dried up. Working from home helped to minimise the short-term impact on offices, but also raised concerns for future space requirements. In contrast, sectors that remained operational during the lock-down such as industrials, have displayed resilience, whilst others have benefited, such as supermarkets and logistics. In this environment, markets were initially unable to operate effectively. Uncertainty caused capital values to fall whilst investor inertia resulted in a collapse in transaction volumes. A reduced risk appetite encouraged a flight to prime quality assets and those with long and secure income streams. The result was a wide dispersion of returns between sectors, investment grades and even regions. An unusual feature of this crisis was the scale of rent payment delinquency, reflecting the impact of the crisis on business revenues but also the UK Government’s policy of protecting tenants from landlord enforcement action. As a result, normally reliable income flows became a challenge to collect. Many tenants did not pay their March and the June quarterly rents and some have continued to ignore their lease obligations and have not paid rent for a whole year. Securing income streams required a pro-active approach from managers, engaging tenants to understand the scale of their financial difficulties and if needed, agreeing relief packages. Valuations too were less reliable and valuers became increasingly cautious, increasing yields and applying reduced rental values in the period of greatest uncertainty. That these responses may have been overly cautious is reflected in improved capital performance at the end of the year, with growth in November and December reversing a trend to lower values which had been in place for two years. Reduced economic activity and weakened tenant finances resulted in increased void rates. The MSCI Monthly Index investment vacancy rate increased to 9.0% compared to 7.5% twelve months ago, but total reversionary potential from voids has risen sharply to 16.7%, indicating significant development vacancy. The highest void rate is in offices at almost 30%. This reflects the trend to shorter leases, greater tenant instability and asset obsolescence. 07 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020** MSCI Monthly Capital Indices recovered in the second half of the year but still ended 2020 -6.3% lower. Despite the contribution from income, the total return from the sector was negative, the first negative 12-month total return since the global financial crisis in 2009. Retail values dropped by -16.9% but industrial asset values increased by 3.6%. Sentiment was a factor but so too was income, retail rental values declined by -8.7% whilst industrial rents increased by +2.3%. ## **Activity** The Fund’s cash holding declined over the year from £35m to £24m or 4.1% of NAV. This change reflects the cost of one new acquisition, capital expenditure on active management projects, a small net inflow of new investor capital and two asset disposals. The property purchased was an industrial warehouse at Magna Park in Lutterworth, a key Midlands distribution and logistics location. The total invested, including acquisition expenses, was £16.2m. The property is let to DHL Supply Chain Limited with three years unexpired on the lease and an attractive rental income yield of 6.1%. Disposal activity was asset led as opposed to strategic. A multi-storey town centre car park in Crawley, let to NCP, was sold with the purchaser paying £7.1m, a premium price reflecting a yield of just 4.2%. The acquisition cost was £5.0m and the most recent valuation £5.3m. The lease had 7 years unexpired and it was considered that the tenant was unlikely to renew. Also sold was a recently refurbished and multi-let period office building in Edinburgh, on George Street. The sale price achieved, at £4.0m, was substantially above the £2.9m book cost and the £3.3m valuation prior to sale. A key focus for the Fund was on maintaining rental income and improving and upgrading key assets. Despite the challenges of remote working the Fund’s property management and investment activities have continued to function well, and a range of assets in the portfolio have recorded valuable progress during the period. At 80 Cannon Street, in the City of London, the largest of the Fund’s investments, the vacant second floor accommodation was let following a successful refurbishment project. Further management activity has commenced involving the refurbishment of the 4th and 9th floors. In the case of the 9th floor, a pre-letting to an existing tenant is already achieved, producing a new record rent for the property. Elsewhere, an important lease extension has been completed on the retail warehouse property in Southampton, let to The Range. Despite the challenging environment a new lease has been completed, helping to secure the long-term income and boosting the capital valuation. New leases were also achieved at the Chorley Retail Park and on the industrial warehouses at Wednesbury in the West Midlands, the IPSL Industrial site at Northampton and at Finlan Road Manchester. Annual Report and Financial Statements 31 December 2020 08 **COIF CHARITIES PROPERTY FUND** ## **REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020** In addition, the long term vacancy at the warehouse at Meir Point, Stoke and the retail warehouse at Cribbs Causeway Bristol also found tenants. Each of these helped to maintain income and contributed to the Fund’s capital performance. A rent review was settled on part of the office accommodation at 1-3 College Hill in London and the uplift in rent achieved, helps to support the overall rental levels in the building and produce an increase in income for the Fund. Plans to redevelop the existing office buildings at Anchorage Gateway, Salford Quays in Manchester and Braywick House in Maidenhead continue to make progress. Here, valuable residential planning consents have been developed, and in the case of Salford Quays, a sale early in 2021 will realise added value from this project. Although development properties add 3.1%, to the portfolio void total, which is well below MSCI data recorded for December 2020, rising longer term vacancy does expose the Fund to higher property income expenses which have increased significantly in recent years and again during 2020. This is in part due to the accounting treatment of growing provision for bad debts given the unprecedented levels of rental delinquency reflecting the impact of the pandemic on business and the economy. More positively, all outstanding rent arrears currently recorded as bad debts (Other property expenses) remain due. It is expected that some of this will be recovered during the course of 2021 and reversing the large provisions made in this year’s accounts. The focus on rent collection and protecting the income streams has required significant effort, engaging and supporting tenants and working to maintain good landlord and tenant relationships. A firm approach has also been appropriate in some instances to protect the interests of the Fund’s Unitholders. A minority of tenants have not paid rent during this period, some have only paid after being pressed and others have agreed monthly payment plans. A few longer-term rent deferments have been agreed, but as yet no rents have been conceded, and aside from where the tenant has been subject to an insolvency procedure, all outstanding rents remain due as arrears. Much consideration has also been given to ensuring multi-let buildings are safe to occupy and to help tenants with their re-occupation plans as lockdown conditions are eased. Administration and Company Voluntary Arrangements (CVAs) activity has increased. The most significant of these is the Travelodge Hotels CVA which resulted in a 75% reduction in that income stream for 2020, although, for the hotel in Cockermouth, Cumbria, a valuable lease extension of seven years was negotiated. Other casualties include Fox Print, which leased industrial units at Tunbridge Wells and Oak Furnitureland at the Salmon Retail Park, Hereford. During the year, quarterly rent collection rates have consistently improved at around 89%, and the more recent 25 December 2020 quarterly rent run is on track to match those levels. The most challenging sub-sector is retail where 16% of retail warehouse rents and 48% of shop rents remain uncollected. 09 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020** In contrast, the collection rates for the industrial and office holdings have been 95% and 91% respectively. This is a complicated and challenging picture with some non-payers genuinely financially distressed. However, of the 11% of rents that currently remain uncollected, most is due from those tenants that have so far refused to pay whilst the UK Governments moratorium against landlord enforcement action continues. ## **Outlook** It has been a tumultuous year for the real estate sector in the UK, one which is likely to leave a long-term legacy. Existing trends have been amplified and accelerated and new ones have emerged, the result has been severe difficulties for the retail sector and yet sustained support for industrial assets. Questions have been raised about the prospects for the office sector. From an economic perspective there is hope that, as social mobility returns, so activity should rebound quickly. Other non-trivial challenges exist of course, including Brexit and the impact of the lockdown on the important services sector. As a result, even with rising output in 2021 and 2022, it will not be until the end of that year before the output levels achieved at the end of 2019 are regained. Within the sector we expect some recovery in transaction levels but no early return to past volumes. An environment of recovery will underpin returns, which are expected to be positive, but to a modest extent; valuer caution is likely to persist and rent collection will remain a challenge given the pressure on some tenants. The divergence of returns at the sub fund level is expected to continue, with questions remaining about the true quality of some retail assets. As a result of this, asset specific risks will remain elevated and void rates could move higher, certainly in the months ahead. The reality is, that even with recovery, the sector continues to face a number of fundamental challenges each of which could have an important influence on returns. The positive side is that UK real estate continues to offer an accessible and transparent market for investors with a high income yield which stands out in a low income environment. **Suspension of COIF Charities Property Fund** Dealings in the Fund were suspended between 24 March 2020 and 24 September 2020. This followed a notice form the Independent Valuer that in the uncertain environment prevailing at that time it was not possible to provide a valuation with the required level of accuracy and from March 2020 valuations were reported on the basis of ‘material valuation uncertainty’. Under these circumstances we were unable to produce a price which we could say with confidence accurately reflected of fair value of the assets and so in order to protect the interests of investors dealing was suspended. Conditions in the sector improved in the months which followed and in September the material uncertainty notice was lifted, allowing transactions to start again. 10 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** **REPORT OF THE INVESTMENT MANAGER for the year ended 31 December 2020** ## **Association of Real Estate Funds** The Fund complies with the minimum requirements of the Association of Real Estate Funds (AREF) Code of Practice, which is a voluntary Code which aims to encourage members of AREF to adopt best practice whenever possible. The Code is publicly available and published on the Association’s website: www.aref.org.uk ## P Hannam Head of Property CCLA Investment Management Limited 19 July 2021 ## **Risk warning** Investors should consider the risk factors identified in the Scheme Particulars. Past performance is not a reliable indicator of future results. The value of investments and the income derived from them may fall as well as rise. Investors may not get back the amount originally invested and may lose money. Property and property related assets are inherently difficult to value because of the individual nature of each property. As a result, valuations are open to substantial subjectivity. There is no assurance that the valuations of the properties will reflect the sale price achieved, even where such sale occurs shortly after the valuation point. The performance of the Fund could be affected adversely by a downturn in the property market in terms of capital value or a weakening of rental yields. The revenue received by the Fund is dependent to a large extent upon the occupancy levels of any property owned by the Fund and the rents paid by these tenants. Rental revenues and property values are affected by changes in general economic climate and local conditions. Property values are dependent in particular on current rental values, prospective rental growth, lease lengths, tenant credit worthiness and the valuation yield (which is itself related to interest rates, the market appetite for property investment in general and with reference to the specific property in question) together with the nature, location and physical condition of the property concerned. The Fund’s Units are intended only for long term investment and are not suitable for money liable to be spent in the near future. The Units are realisable only on each monthly dealing day and whilst investors can request a redemption at any time, all such requests are subject to a minimum notice period of 90 calendar days. Annual Report and Financial Statements 31 December 2020 11 **COIF CHARITIES PROPERTY FUND** ## **INDEPENDENT AUDITORS’ REPORT to the Trustees of COIF Charities Property Fund** ## **Report on the audit of the financial statements** ## _**Opinion**_ In our opinion, the financial statements of COIF Charities Property Fund (the “Fund”): - give a true and fair view of the financial position of the Fund as at 31 December 2020 incoming resources and application of resources, for the year then ended and of the movements in the net assets of the Fund between their position as at 1 January 2020 and 31 December 2020; and - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law), and - have been prepared in accordance with the requirements of the Charities Act 2011 and Regulation 6 of The Charities (Accounts and Reports) Regulations 2008). We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the balance sheet as at 31 December 2020; the statement of total return, the statement of change in net assets attributable to unitholders for the year then ended; the distribution tables; and the notes to the financial statements. ## _**Basis for opinion**_ We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## _Independence_ We remained independent of the Fund in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. ## _**Conclusions relating to going concern**_ Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Fund’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue. Annual Report and Financial Statements 31 December 2020 12 **COIF CHARITIES PROPERTY FUND** ## **INDEPENDENT AUDITORS’ REPORT to the Trustees of COIF Charities Property Fund** In auditing the financial statements, we have concluded that the Manager’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the Fund’s ability to continue as a going concern. Our responsibilities and the responsibilities of the Manager with respect to going concern are described in the relevant sections of this report. ## _**Reporting on other information**_ The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The Manager is responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities. Base on our work undertaken in the course of the audit, The Charities Act 2011 requires us to also report certain opinions and matters as described below. ## _Manager’s Report_ In our opinion, the information given in the Report of the Investment Manager for the financial year for which the financial statements are prepared is consistent with the financial statements. ## _**Responsibilities for the financial statements and the audit**_ _Responsibilities of the Manager for the financial statements_ As explained more fully in the Statement of Board, Depositary and Manager Responsibilities, the manager is responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Manager is also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 13 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **INDEPENDENT AUDITORS’ REPORT to the Trustees of COIF Charities Property Fund** In preparing the financial statements, the Manager is responsible for assessing the Fund’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the Manager either intends to wind up or terminate the Fund, or has no realistic alternative but to do so. ## _Auditors’ responsibilities for the audit of the financial statements_ We are eligible to act and have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. Based on our understanding of the Fund/industry, we identified that the principal risks of noncompliance with laws and regulations related to the Charities Act 2011 and we considered the extent to which non-compliance might have a material effect on the financial statements, we also considered those laws and regulations that have a direct impact on the financial statement. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or to increase the net asset value of the Fund and assumptions and judgements made by management in their significant accounting estimates. Audit procedures performed included: - Discussions with the Manager, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - Reviewing relevant meeting minutes, including those of the Manager’s board of directors; 14 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **INDEPENDENT AUDITORS’ REPORT to the Trustees of COIF Charities Property Fund** - Identifying and testing journal entries, specifically any journals posted as part of the financial year end close process; and - Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing; and - Challenging assumptions and judgements made by management in their significant accounting estimates. Charities (Accounts and Reports) Regulations 2008) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. ## _**Other required reporting**_ ## _Charities Act 2011 exception reporting_ There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. Under the Charities Act 2011 we are required to report to you if, in our opinion: 1. we have not received all the information and explanations we require for our audit; or 2. sufficient accounting records have not been kept; or 3. the financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report. ## _Use of this report_ This report, including the opinion, has been prepared for and only for the Fund’s Managers as a body in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act (Regulation 24 of The PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London 19 July 2021 Annual Report and Financial Statements 31 December 2020 15 **COIF CHARITIES PROPERTY FUND** ## **REPORT OF THE VALUERS** Dear Sirs, ## **The COIF Charities Property Fund Property Valuation as at 31 December 2020** In accordance with your instructions received from The COIF Charities Property Fund (“the Fund”) to value all the property investments owned by the Fund (“the Properties”) on a monthly basis, we have valued the Properties as at 31 December 2020. The valuation has been prepared on the basis of Fair Value, in accordance with the current edition of the RICS valuation – Professional Standards published by the Royal Institution of Chartered Surveyors (RICS). We understand that our valuation is required for Unit pricing and financial statements purposes. Our report is addressed to the Fund. We are of the opinion that the aggregate Fair Values of all the properties held by the Fund as at 31 December 2020 is **£569,880,000 (Five Hundred and Sixty Nine Million Eight Hundred and Eighty Thousand Pounds).** Details of the basis of our valuation and the individual properties are set out in our valuation report, dated 8 January 2021. ## **Market conditions explanatory note: Novel Coronavirus (COVID-19)** The outbreak of COVID-19, declared by the World Health Organisation as a “Global Pandemic” on the 11th March 2020, has and continues to impact many aspects of daily life and the global economy – with some real estate markets having experienced lower levels of transactional activity and liquidity. Travel, movement and operational restrictions have been implemented by many countries. In some cases, “lockdowns” have been applied to varying degrees and to reflect further “waves” of COVID-19; although these may imply a new stage of the crisis, they are not unprecedented in the same way as the initial impact. The pandemic and the measures taken to tackle COVID-19 continue to affect economies and real estate markets globally. Nevertheless, as at the valuation date property markets are mostly functioning again, with transaction volumes and other relevant evidence at levels where an adequate quantum of market evidence exists upon which to base opinions of value. Accordingly, and for the avoidance of doubt, our valuation is not reported as being subject to ‘material valuation uncertainty’ as defined by VPS 3 and VPGA 10 of the RICS Valuation – Global Standards. Annual Report and Financial Statements 31 December 2020 16 **COIF CHARITIES PROPERTY FUND** ## **REPORT OF THE VALUERS** For the avoidance of doubt this explanatory note has been included to ensure transparency and to provide further insight as to the market context under which the valuation opinion was prepared. In recognition of the potential for market conditions to move rapidly in response to changes in the control or future spread of COVID-19 we highlight the importance of the valuation date. Yours faithfully, Knight Frank LLP 19 July 2021 17 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **SUMMARY RISK INDICATOR** The European Union imposed legislation which sets out detailed guidelines for the calculation of the risk ratings of products to be portrayed through a summary risk indicator. It is intended to be a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because the Manager is not able to pay you. The risk of the product may be significantly higher than the one represented in the summary risk indicator where the product is not held for the recommended holding period (RHP). ||**1**
**2**
**3**
**4**
**5**
**6**
**7**| |---|---| |Lower risk
Higher risk|| The Manager has classified the COIF Charities Property Fund as 2 out of 7, which is a low risk class. This rates the potential losses from future performance at a low level and poor market conditions are very unlikely to impact the Manager’s capacity to pay you. This classification is not guaranteed and may change over time and may not be a reliable indication of the future risk profile of the Fund. The lowest category does not mean risk free. The summary risk indicator assumes investment in the Fund for the RHP of five years. The actual risk can vary significantly if you cash in at an early stage and you may get back less. The Fund should be considered illiquid as it is not admitted to trading on a secondary market and no alternative liquidity facility is promoted by the Manager or a third party. Property is recognised as an illiquid asset and is thus most suited to long-term investment. Whilst investors can request redemption at any time, all such requests are subject to a minimum notice period of 90 calendar days. The Fund normally deals on the last Tuesday and Thursday of each month. The Fund does not include any protection from future market performance, so you could lose some or all your investment. Commercial property can be an illiquid asset class and the Manager has the discretion to defer redemptions beyond the minimum notice period, up to six months in total (subject to a period of notice of not less than 30 days to investors), if it believes doing so is in the interest of investors and the good management of the Fund. Where an investor makes an application to sell or cancel Units the Manager may, with the agreement of the Trustee, arrange to transfer scheme property out of the Fund in place of payment in cash for the Units, but only if it is judged by the Manager not to disadvantage the remaining investors. A more detailed description of risk factors that apply to this product is set out in the latest Scheme Particulars, which is available on the Manager’s website or by request. 18 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **COMPARATIVE TABLE** **Change in net assets per Unit** **Income Units Year to** Year to Year to Year to Year to **31.12.2020** 31.12.2019 31.12.2018 31.12.2017 31.12.2016 **pence** pence pence pence pence **per Unit** per Unit per Unit per Unit per Unit Opening net asset value per Unit **115.45** 119.05 116.05 111.73 115.45 Return before operating charges **0.97** 4.51 10.90 11.92 3.88 Operating charges **(1.81)** (1.71) (1.50) (1.20) (1.20) Return after operating charges **(0.84)** 2.80 9.40 10.72 2.68 Distributions on income Units **(5.20)** (6.40) (6.40) (6.40) (6.40) Closing net asset value per Unit** 109.41** 115.45 119.05 116.05 111.73 **Performance** Return after charges -0.73%** 2.35% 8.10% 9.59% 2.32% Gross yield* 4.62%** 5.40% 5.33% 5.39% 5.62% **Other information** Closing net asset value (£’000) **584,485** 615,605 597,632 520,120 522,735 Closing number of Units (in thousands) **534,234,121** 533,227,472 502,012,088 448,183,047 467,870,131 **Prices (pence per Unit)** Highest Unit price (offer) **119.63** 122.09 123.51 120.28 120.13 Lowest Unit price (bid) **107.50** 114.71 115.25 111.33 109.74 Annual management charge* **0.65%** 0.65% 0.64% 0.65% 0.65% Other costs **0.04%** 0.06% 0.08% 0.08% 0.07% **Operating charges 0.69%** 0.71% 0.72% 0.73% 0.72% Other property costs **0.88%** 0.73% 0.57% 0.34% 0.32% Total charges figure **1.57%** 1.44% 1.29% 1.07% 1.04% All of the above figures are ratios set against the Fund’s average net assets calculated over the year. - The Annual Management Charge is 0.65% (plus VAT, which is recoverable) of the net asset value of the Fund and is charged to capital. The month end valuation forms the basis of the charge for the following month. - ** The return after charges has been calculated in accordance with the Statement of Recommended Practices’ prescribed calculation methodology. This is for financial statement reporting purposes only and may differ from the Fund’s performance disclosed on the Report of the Fund Manager. - *** The gross yield is calculated as the sum of the gross of tax, net of expenses income distributed over the year expressed as a percentage of the offer price at the year end. - **** Closing net asset value per Unit shown is calculated using the closing net assets attributable to Unitholders as presented in these financial statements. This is for financial statement reporting purposes only and may differ from the Unit price disclosed in the Report of the Investment Manager. Annual Report and Financial Statements 31 December 2020 19 **COIF CHARITIES PROPERTY FUND** ## **PORTFOLIO ANALYSIS at 31 December 2020** ## **Top Ten Property Holdings** |**Property**||% of Fund| |---|---|---| |London, 80 Cannon Street|Offices/Shops|10.42%| |Brighton, Lewes Road|Retail Warehouses|5.37%| |Mendlesham, Norwich Road|Industrial|5.15%| |Bracknell, 5 Arlington Square|Office|4.56%| |Bath, Rossiter Road|Other|3.44%| |London, 1-3 College Hill|Office|3.27%| |Lutterworth, Hunter Boulevard|Industrial|3.26%| |Lutterworth, Hunter Boulevard|Industrial|2.91%| |Bristol, 1400-1600 Aztec West|Industrial|2.90%| |Crawley, Manor Gate Manor Royal|Industrial|2.74%| ## **Asset by type** ## **Regional and sector analysis** **----- Start of picture text -----**
Industrial & Warehouses – 38.26%
Offices – 30.89%
Retail Warehouses – 15.56%
Other – 8.01%
Shops – 3.69%
Cash – 3.59%
**----- End of picture text -----**
**----- Start of picture text -----**
Industrial excl. SE – 25.48%
Retail Warehouse – 15.56%
Offices rest of SE – 13.03%
Industrial South East – 12.78%
Offices City – 12.04%
Other – 8.00%
Offices excl. SE – 5.83%
Cash – 3.59%
Shops excl. SE – 1.87%
Shops South East – 1.82%
**----- End of picture text -----**
## **Portfolio turnover** |**Portfolio turnover**||| |---|---|---| ||**Year to**|Year to| ||**31.12.2020**|31.12.2019| |Portfolio turnover rate|**1.80%**|6.06%| The portfolio turnover rates are calculated by the total sales or purchases (excluding cash), whichever is less, divided by average monthly assets during the year. 20 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PORTFOLIO STATEMENT** ## **at 31 December 2020** ## **Properties** |Total in valuation ranges|£’000|% of Fund| |---|---|---| |Valued between £0 and £5m|81,830|14.00| |29 properties||| |Valued between £5 and £10m|150,400|25.73| |21 properties||| |Valued between £10 and £25m|192,300|32.90| |13 properties||| |Valued at over £25m|145,350|24.87| |4 properties||| |Net other assets|14,605|2.50| |**Net assets**|**584,485**|**100.00**| ## **Ownership of the Fund at 31 December 2020** |**at 31 December 2020**|||| |---|---|---|---| |||Number of|%| ||Number|Units in issue|of Units| ||of investors|‘000|in issue| |Less than 1%|706|141,845,110|26.55| |1% or greater but less than 2%|4|32,840,148|6.15| |2% or greater but less than 4%|2|31,602,650|5.92| |4% or greater but less than 8%|2|63,469,900|11.88| |Greater than 8%|2|264,476,313|49.50| ||716|534,234,121|100.00| |Held by the largest investor|1|158,730,980|29.71| |Held by top 5 investors|5|344,463,373|64.48| The COIF Charities Investment Fund has a holding of 105,745,333 Units – 19.79% (2019: 105,559,890 – 19.80%), the COIF Charities Ethical Investment Fund has a holding of 39,091,751 Units – 7.32% (2019: 39,091,751 – 7.33%) and the CBF Church of England Property Fund has a holding of 158,730,980 Units – 29.71% (2019: 159,711,353 – 29.95%). 21 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO at 31 December 2020** ## **Standard Retail** |**Property**|**Lease**
**Mkt value**
**Term/**
**review**
**Next***
**Rent**
**range**
**Tenant from period review £**
**£m**
Monsoon Accessorize
10 yrs
5 yrs
2021
108,000
0-5
Ltd
18.02.16
C & J Clark
10 yrs
5 yrs
2021
210,000
0-5
International Ltd
20.04.16
Alexander Mullan
1 yr
0 yrs
2020
10,740
and Charles Williams
22.03.19
Your
10 yrs
5 yrs
2021
30,000
0-5
Conveyancer Ltd
01.08.16
Barrie Dear Ltd
15 yrs
5 yrs
2025
30,000
11.06.20
Yaich Import Export
10 yrs
5 yrs
2025
17,000
Ltd
11.06.20
Clydesdale Bank Plc
5 yrs
5 yrs
2024
117,500
0-5
25.06.19
Starbucks Coffee
18 yrs
0 yrs
2024
109,500
Company (UK) Ltd
02.10.06
Waterstones
10 yrs
5 yrs
2024
112,500
0-5
Booksellers Ltd
29.03.19
Queensway Coffee
10 yrs
5 yrs
2022
80,000
House Ltd
14.06.17
Schuh Ltd
10 yrs
5 yrs
2022
120,000
0-5
15.10.12
Your Phone Care Ltd
15 yrs
5 yrs
2025
34,750
0-5
30.06.15
Wilco Retail Ltd
15 yrs
5 yrs
2022
420,000
0-5
06.01.17| |---|---| |71-72 East Street
CHICHESTER|| |76/77 East Street
CHICHESTER|| |85-89 High Street
DUNFERMLINE|| |131-135
Northumberland St
NEWCASTLE
UPON TYNE|| |8-9 High Street
STRATFORD
UPON AVON|| |17 King Street
TRURO|| |18 King Street
TRURO|| |18-20 Boscawen Street
TRURO|| * Date in the past indicates that the review has not been settled yet. 22 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO at 31 December 2020** ## **Offices** |**Property**|**Lease**
**Mkt value**
**Term/**
**review**
**Next***
**Rent**
**range**
**Tenant from period review £**
**£m**
Technip UK Ltd
12 yrs
5 yrs
2023
575,235
5-10
07.02.11
Technip UK Ltd
15 yrs
5 yrs
2023
573,975
16.05.08
Scottish Enterprise
5 yrs
0 yrs
2022
167,518
0-5
18.12.17
SSE
30 yrs
1 yr
2021
21,380
Telecomunications
08.12.17
Virgin Media Ltd
10 yrs
3 yrs
–
2,645
>25
06.02.12
Verizon UK Ltd
3 yrs
0 yrs
–
2,637
30.01.08
Paratus AMC Ltd
6 yrs
0 yrs
2023
562,708
17.10.17
Lloyds Register
10 yrs
5 yrs
2023
574,560
EMEA
02.03.18
Skillsoft UK Ltd
10 yrs
5 yrs
2024
215,604
15.03.19
Centrilogic Ltd
24 yrs
5 yrs
2023
88,592
26.04.18
Centrilogic Ltd
25 yrs
5 yrs
2022
289,124
01.12.17
Hoare Lea LLP
15 yrs
5 yrs
2021
400,634
5-10
04.11.16| |---|---| |Aspect 32
ABERDEEN|| |New Lanarkshire
House
BELSHILL|| |5 Arlington Square
BRACKNELL|| |155 Aztec West
BRISTOL|| * Date in the past indicates that the review has not been settled yet. 23 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO** ## **at 31 December 2020** ## **Offices** _**(continued)**_ |**Offices****_(continued)_**|| |---|---| |**Property**|**Lease**
**Mkt value**
**Term/**
**review**
**Next***
**Rent**
**range**
**Tenant from period review £**
**£m**
Streets Whitmarsh
10 yrs
5 yrs
2021
71,850
10-25
Sterland LLP
08.08.16
Chase De Vere
10 yrs
0 yrs
2023
43,000
IFA Group Plc
10.05.13
Tescan-UK Ltd
5 yrs
0 yrs
2023
52,480
20.12.13
Henry Riley LLP
10 yrs
5 yrs
2023
40,986
03.06.13
Anatune Ltd
6 yrs
0 yrs
2022
87,068
24.06.16
Atkins Ltd
5 yrs
0 yrs
2021
129,675
24.06.16
Aecom Ltd
10 yrs
5 yrs
2022
111,764
24.07.17
MM Wealth Ltd
10 yrs
5 yrs
2023
91,500
22.03.18
Automatic Data
17 yrs
1 yr
2022
1403,696
10-25
Processing Ltd
24.03.05
Hayes & Jarvis
3 yrs
0 yrs
2022
485,000
0-5
(Travel) Ltd
11.02.19| |Wellbrook Court
CAMBRIDGE|| |Syward Place
CHERTSEY|| |The Atrium
CRAWLEY|| > * Date in the past indicates that the review has not been settled yet. 24 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO** ## **at 31 December 2020** ## **Offices** _**(continued)**_ |**Property**|**Lease**
**Mkt value**
**Term/**
**review**
**Next***
**Rent**
**range**
**Tenant from period review £**
**£m**
DAC Beachcroft
5 yrs
0 yrs
2023
97,260
0-5
Scotland LLP
01.02.18
DAC Beachcroft
5 yrs
0 yrs
2023
48,629
Scotland LLP
01.02.18
Blue Arrow Ltd
3 yrs
0 yrs
2022
46,300
22.03.19
DAC Beachcroft
8 yrs
0 yrs
2021
2,000
Scotland LLP
14.06.13
Thus Group
25 yrs
5 yrs
2020
64,660
0-5
Holdings Plc
30.03.00
Save & Invest
20 yrs
5 yrs
2022
75,000
(Financial Planning)
18.06.07
MLM CPS Ltd
5 yrs
0 yrs
2024
26,042
01.03.19
Yellowcom Ltd
2 yrs
0 yrs
2019
2,500
20.03.17
Vodafone Ltd
15 yrs
3 yrs
2019
12,417
07.12.04
Selfridges Retail Ltd
15 yrs
5 yrs
2025
340,992
5-10
28.10.15
Sytner Group Ltd
22 yrs
22 yrs
2024
280,000
0-5
08.04.19
Baker Tilly
15 yrs
5 yrs
2022
241,439
0-5
Management Ltd
29.09.07| |---|---| |125/139 West
Regent Street
GLASGOW|| |100 West
Regent Street
GLASGOW|| |4 Smith Way
LEICESTER|| |3 Penman Way
LEICESTER|| |7 Lewis Court
LEICESTER|| * Date in the past indicates that the review has not been settled yet. 25 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO** ## **at 31 December 2020** ## **Offices** _**(continued)**_ |**Offices****_(continued)_**|| |---|---| |**Property**|**Lease**
**Mkt value**
**Term/**
**review**
**Next***
**Rent**
**range**
**Tenant from period review £**
**£m**
Hedley Foundation
10 yrs
5 yrs
2023
62,820
10-25
Ltd
25.03.18
G O Woodcock
9 yrs
0 yrs
2023
122,640
M Woodcock
12.08.14
J Woodcock
Interfax Europe Ltd
5 yrs
0 yrs
2024
90,000
08.03.19
MRA Search Ltd
4 yrs
0 yrs
2024
69,120
22.12.20
G O Woodcock
7 yrs
0 yrs
2023
59,995
M Woodcock
08.03.16
J Woodcock
Keycraft Ltd
5 yrs
0 yrs
2023
58,435
02.11.18
S & H Consulting
5 yrs
0 yrs
2021
3,000
Ltd
04.07.16
Warren Lefton
3 yrs
0 yrs
2022
3,250
28.10.19
Interior Motives
10 yrs
0 yrs
2024
60,000
International Ltd
01.07.14
Capital Asset
10 yrs
0 yrs
2024
116,000
Management
04.07.14
(Financial Services)
MRA Search Ltd
5 yrs
0 yrs
2024
132,720
18.01.19
Kinney Green LLP
5 yrs
0 yrs
2024
61,468
11.02.19| |1- 3 College Hill
LONDON|| * Date in the past indicates that the review has not been settled yet. 26 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO** ## **at 31 December 2020** ## **Offices** _**(continued)**_ |**Offices****_(continued)_**|| |---|---| |**Property**|**Lease**
**Mkt value**
**Term/**
**review**
**Next***
**Rent**
**range**
**Tenant from period review £**
**£m**
Schneider Electric
10 yrs
5 yrs
2021
378,500
5-10
Ltd
12.09.11
UK Drainage Claims
3 yrs
0 yrs
2021
31,500
Ltd
09.01.18
Windsor Accountancy
2 yrs
0 yrs
2022
50,000
Ltd
04.09.20
Via Resource Ltd
5 yrs
0 yrs
2020
30,000
01.01.15
The Therapy Rooms
5 yrs
0 yrs
2021
7,000
South Ltd
31.05.16
Kalra Business
2 yrs
0 yrs
2020
17,500
Services Ltd
07.06.18
Semarchy Ltd
3 yrs
0 yrs
2025
33,000
04.03.20
Zagg International
2 yrs
0 yrs
2021
140,300
Ltd
01.04.19
Vacant
–
–
–
–
0-5
Aecom Ltd
14 yrs
5 yrs
2022
545,127
5-10
20.06.08| |Windsor Road
MAIDENHEAD|| |Gateway House
The Anchorage
MANCHESTER|| |AECOM House
ST ALBANS|| > * Date in the past indicates that the review has not been settled yet. 27 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO** ## **at 31 December 2020** ## **Offices** _**(continued)**_ |**Offices****_(continued)_**|| |---|---| |**Property**|**Lease**
**Mkt value**
**Term/**
**review**
**Next***
**Rent**
**range**
**Tenant from period review £**
**£m**
Kuehne & Nagel
15 yrs
5 yrs
2025
285,110
5-10
Ltd
20.01.19
World Vision
10 yrs
5 yrs
2022
227,887
International
20.01.12
K2M UK Ltd
5 yrs
0 yrs
2021
261,434
16.11.16
Kuehne & Nagel
4 yrs
0 yrs
2019
3,000
Ltd
16.07.15| |1 Roundwood
Avenue
WEST LONDON|| * Date in the past indicates that the review has not been settled yet. 28 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO** ## **at 31 December 2020** ## **Offices/Shops** |**Offices/Shops**|| |---|---| |**Property**|**Lease**
**Mkt value**
**Term/**
**review**
**Next***
**Rent**
**range**
**Tenant from period review £**
**£m**
Boots UK Ltd
10 yrs
5 yrs
2024
350,000
>25
16.10.19
Cabot Credit
10 yrs
5 yrs
2024
255,024
Management Ltd
01.03.19
International
10 yrs
5 yrs
2025
306,393
Registries (UK) Ltd
25.03.20
Freight Investor
1 yr
0 yrs
2021
240,000
Services Ltd
09.08.20
Advantage Professional
11 yrs
0 yrs
2020
257,600
UK Ltd
19.01.10
Silver Development
10 yrs
5 yrs
2023
238,619
and Constuction
11.11.13
Freight Investor
5 yrs
0 yrs
2025
384,000
Services Ltd
10.11.20
Sonovate Ltd
5 yrs
0 yrs
2021
218,477
10.05.16
SW6 Associates Ltd
5 yrs
0 yrs
2021
92,100
10.05.16
Nexthink Ltd
5 yrs
0 yrs
2023
242,450
15.06.18
ISR Research Ltd
5 yrs
0 yrs
2023
128,467
21.09.18
Netroadshow Inc
5 yrs
0 yrs
2023
150,309
27.09.18| |80 Cannon Street
LONDON|| * Date in the past indicates that the review has not been settled yet. 29 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO** ## **at 31 December 2020** ## **Industrial** |**Property**|**Lease**
**Mkt value**
**Term/**
**review**
**Next***
**Rent**
**range**
**Tenant from period review £**
**£m**
Vacant
–
–
–
–
0-5
Rettig (UK) Ltd
99 yrs
14 yrs
2025
669,814
10-25
17.10.69
Aardman Holdings
6 yrs
6 yrs
2022
95,272
10-25
Ltd
25.03.19
Aardman Holdings
6 yrs
6 yrs
2022
269,130
Ltd
25.03.19
Aardman Holdings
6 yrs
6 yrs
2022
63,820
Ltd
25.03.19
Aardman Holdings
6 yrs
6 yrs
2022
62,820
Ltd
25.03.19
PJH Group Ltd
10 yrs
5 yrs
2022
78,000
03.12.18
Aardman Holdings
6 yrs
3 yrs
2022
68,958
Ltd
25.03.19
Spandex Ltd
5 yrs
0 yrs
2021
540,350
22.01.16
Giant Booker Ltd
25 yrs
5 yrs
2020
652,923
5-10
28.02.05
Rossetts (UK) Ltd
10 yrs
5 yrs
2023
132,000
10-25
26.11.18
Creative Technology
10 yrs
5 yrs
2021
443,000
Ltd
07.06.11| |---|---| |Wallace Facility
Badentoy
ABERDEEN|| |Drum Industrial
Estate
BIRTLEY|| |1400-1600 Aztec
West Business Park
BRISTOL|| |Batchelor Road
CARDIFF|| |Manor Gate
Manor Royal
CRAWLEY|| * Date in the past indicates that the review has not been settled yet. 30 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO** ## **at 31 December 2020** ## **Industrial** _**(continued)**_ |**Industrial****_(continued)_**||||||| |---|---|---|---|---|---|---| ||||**Lease**|||**Mkt value**| |||**Term/**|**review**|**Next***|**Rent**|**range**| |**Property**|**Tenant**|**from **|**period**|**review **|**£**|**£m**| |Unit 61 Finlan Road|Romac Logistics Ltd|16 yrs|5 yrs|2026|319,992|5-10| |GREATER||03.12.20||||| |MANCHESTER||||||| |28-32 Fountain Drive|Elis UK Ltd|25 yrs|5 yrs|2022|275,000|0-5| |INCHINNAN||23.06.17||||| |Unit B Telford Point|Knights of Old Ltd|13 yrs|5 yrs|2021|357,832|5-10| |KETTERING||01.07.13||||| |7 St Andrews Way|Vacant|–|–|–|–|10-25| |LONDON||||||| |3320 Hunter|VWR International|35 yrs|5 yrs|2024|1,044,223|10-25| |Boulevard|Ltd|10.10.94||||| |LUTTERWORTH||||||| |Unit 3220|DHL Supply Chain|10 yrs|0 yrs|2024|980,699|10-25| |Wellington Park|Ltd|25.12.14||||| |LUTTERWORTH||||||| |Unit G1 Touchet|Disaster Recovery|15 yrs|5 yrs|2023|362,000|5-10| |Hall Road|Services Ltd|07.01.13||||| |MANCHESTER||||||| |Norwich Road|CEVA Logistics Ltd|20 yrs|1 yr|2021|2,200,889|>25| |MENDLESHAM||20.05.10||||| |Brackmills|C Butt Ltd|10 yrs|5 yrs|2024|635,000|10-25| |Industrial Estate||24.06.14||||| |NORTHAMPTON||||||| |Dimensions House|Harvey Nichols and|10 yrs|5 yrs|2020|479,543|5-10| |NORTHAMPTON|Company Ltd|11.03.15||||| |100 Pavilion Drive|Intelligent Processing|15 yrs|0 yrs|2025|1,275,000|10-25| |NORTHAMPTON|Solutions Ltd|25.12.10||||| * Date in the past indicates that the review has not been settled yet. 31 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO** ## **at 31 December 2020** ## **Industrial** _**(continued)**_ |**Industrial****_(continued)_**|| |---|---| |**Property**|**Lease**
**Mkt value**
**Term/**
**review**
**Next***
**Rent**
**range**
**Tenant from period review £**
**£m**
Sunseeker International
20 yrs
5 yrs
2022
320,000
0-5
Ltd
26.04.20
Emma Bridgewater Ltd
15 yrs
5 yrs
2025
346,480
5-10
04.11.20
SH Muffet Ltd
10 yrs
5 yrs
2025
118,600
5-10
24.03.10

Smiths News
15 yrs
5 yrs
2025
285,000
0-5
Trading Ltd
03.07.20
Royal Mail Group Ltd
11 yrs
5 yrs
2025
246,000
5-10
31.12.19
Cosentino UK Ltd
10 yrs
5 yrs
2022
179,616
06.11.12| |35 Willis Way
Industrial
POOLE|| |Mier Point
STOKE-ON-TRENT|| |Units 1& 2
Longfield Road
TUNBRIDGE WELLS|| |Javelin Park
WEDNESBURY|| |6 Weston Avenue
WEST THURROCK|| * Date in the past indicates that the review has not been settled yet. 32 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO** ## **at 31 December 2020** ## **Retail Warehouses** |**Property**|**Lease**
**Mkt value**
**Term/**
**review**
**Next***
**Rent**
**range**
**Tenant from period review £**
**£m**
What Stores Ltd
3 yrs
0 yrs
2023
40,000
0-5
23.10.20
Aldi Stores Ltd
20 yrs
5 yrs
2023
400,000
>25
18.06.18
Hobbycraft Trading
15 yrs
5 yrs
2023
236,828
Ltd
25.05.18
Halfords Ltd
10 yrs
5 yrs
2022
240,000
04.09.17
B&Q Plc
15 yrs
5 yrs
2021
945,765
04.08.16
Costa Ltd
10 yrs
5 yrs
2023
67,500
04.06.18
B&M Retail
31 yrs
5 yrs
2023
309,100
0-5
Ltd
30.04.03
Wickes Building
25 yrs
5 yrs
2025
330,000
5-10
Supplies Ltd
24.10.00
DP Realty Ltd
25 yrs
5 yrs
2020
17,500
t/a Domino’s Pizza
24.10.00
Subway Realty Ltd
10 yrs
5 yrs
2020
20,000
26.01.15
BJR Foods Ltd
10 yrs
5 yrs
2025
67,575
t/a KFC
24.10.20
Diets 2 Go Ltd
10 yrs
5 yrs
2024
9,000
10.10.19
Sunseeker Beds
10 yrs
5 yrs
2024
25,000
Ltd
23.09.19| |---|---| |Unit 5
Highwood Lane
BRISTOL|| |Lewes Road
BRIGHTON|| |Silver Street
BROWNHILLS|| |Chorley Retail Park
CHORLEY|| * Date in the past indicates that the review has not been settled yet. 33 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO** ## **at 31 December 2020** ## **Retail Warehouses** _**(continued)**_ |**Property**|**Lease**
**Mkt value**
**Term/**
**review**
**Next***
**Rent**
**range**
**Tenant from period review £**
**£m**
Boots UK Ltd
20 yrs
5 yrs
2019
227,988
0-5
24.06.04
B&M Retail Ltd
10 yrs
0 yrs
2026
210,000
0-5
11.02.16
Dreams PLC
6 yrs
0 yrs
2024
75,000
12.12.18
Oak Furnitureland
10 yrs
5 yrs
2024
168,000
Group Ltd
03.07.19
Jacmar Developments
125 yrs
0 yrs
–
–
Ltd
25.12.93
Vacant
–
–
–
–
0-5
Wickes Building
25 yrs
5 yrs
2023
638,750
5-10
Supplies Ltd
03.10.03
B&M Retail Ltd
15 yrs
5 yrs
2022
374,638
0-5
11.10.12
TJX UK
19 yrs
5 yrs
2022
347,500
0-5
24.06.03
Matalan Retail Ltd
25 yrs
5 yrs
2020
253,600
0-5
17.11.95
Wren Kitchens Ltd
10 yrs
0 yrs
2023
296,221
10-25
10.04.13
Sofology Ltd
10 yrs
0 yrs
2023
445,804
08.04.13| |---|---| |Unit 8
DERBY|| |Holmer Road
HEREFORD|| |100 Regent Road
MANCHESTER|| |Snowden Drive
MILTON KEYNES|| |Wellingborough Road
NORTHAMPTON|| |St Peter’s Way
NORTHAMPTON|| |Portway Road
OLDBURY|| |Solihull Gate
Retail Park
SOLIHULL|| * Date in the past indicates that the review has not been settled yet. 34 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO** ## **at 31 December 2020** ## **Retail Warehouses** _**(continued)**_ |**Retail Warehouses****_(co_**|**_ntinued)_**| |---|---| |**Property**|**Lease**
**Mkt value**
**Term/**
**review**
**Next***
**Rent**
**range**
**Tenant from period review £**
**£m**
Tapi Carpets & Floors
10 yrs
5 yrs
2022
330,693
Ltd
24.07.17
Furniture Village
20 yrs
15 yrs
2022
325,000
Ltd
04.05.07
CDS (Superstores
32 yrs
5 yrs
2023
431,037
5-10
International) Ltd
28.11.03
TJX UK Ltd
20 yrs
5 yrs
2022
379,300
5-10
25.12.02
Argos Ltd
10 yrs
5 yrs
2024
247,894
20.12.19| |Solihull Gate
Retail Park
SOLIHULL_(continued)_|| |230-234
Winchester Road
SOUTHAMPTON|| |Units 1 & 2
TAMWORTH|| * Date in the past indicates that the review has not been settled yet. 35 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **PROPERTY PORTFOLIO** ## **at 31 December 2020** ## **Other** |**Other**|| |---|---| |**Property**|**Lease**
**Mkt value**
**Term/**
**review**
**Next***
**Rent**
**range**
**Tenant from period review £**
**£m**
Travelodge Hotels
40 yrs
1 yr
2021
320,130
10-25
Ltd
02.06.08
Broughtons of
15 yrs
5 yrs
2021
261,500
5-10
Cheltenham Ltd
11.01.11
Inchcape Estates
10 yrs
0 yrs
2021
143,500
Ltd
08.09.11
Travelodge Hotels
32 yrs
5 yrs
2022
43,022
0-5
Ltd
14.12.07
Motorlines Holdings
25 yrs
5 yrs
2023
400,000
5-10
Ltd
23.11.18
Eastern Western Motor
25 yrs
5 yrs
2021
286,254
0-5
Group Ltd
27.07.01
Ideal Shopping
20 yrs
5 yrs
2024
509,134
5-10
Direct Ltd
31.01.14
Ideal Shopping
18 yrs
5 yrs
2024
12,808
Direct Ltd
13.06.16| |Rossiter Road
BATH|| |Rutherford Way
CHELTENHAM|| |Europe Way
COCKERMOUTH|| |Rennie Drive
DARTFORD|| |100 West Street
GLASGOW|| |Newark Road
PETERBOROUGH|| > * Date in the past indicates that the review has not been settled yet. 36 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **STATEMENT OF TOTAL RETURN for the year ended 31 December 2020** |||**Year**|**ended**|Year|ended| |---|---|---|---|---|---| |||**31.12.2020**||31.12.2019|| ||_Note_|**£’000**|**£’000**|£’000|£’000| |Income|||||| |Net capital losses|_2_||**(33,128)**||(14,997)| |Revenue|_3_|**42,890**||39,700|| |Expenses|_4_|**(15,946)**||(12,138)|| |Finance costs: interest|_6_|**(33)**||(9)|| |Net revenue before taxation||**26,911**||27,553|| |Taxation|_5_|**–**||–|| |Net revenue after taxation|||**26,911**||27,553| |**Total return before distributions**|||**(6,217)**||12,556| |Finance costs: distributions|_6_||**(28,475)**||(34,011)| |**Change in net assets attributable to**|||||| |**Unitholders from investment activities**|||**(34,692)**||(21,455)| ## **STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS for the year ended 31 December 2020** ||**Year**|**ended**|Year|ended| |---|---|---|---|---| ||**31.12.2020**||31.12.2019|| ||**£’000**|**£’000**|£’000|£’000| |**Opening net assets attributable to Unitholders**||**615,605**||597,632| |Amounts receivable on issue of Units|**30,154**||85,510|| |Amountspayable on cancellation of Units|**(26,582)**||(46,082)|| |||**3,572**||39,428| |Change in net assets attributable to||||| |Unitholders from investment activities||**(34,692)**||(21,455)| |**Closing net assets attributable to Unitholders**||**584,485**||615,605| The notes on pages 40 to 52 and distribution table on page 53 form part of these financial statements. Annual Report and Financial Statements 31 December 2020 37 COIF CHAIiITIES PILOPERTY FUND CCLA BALANCE SHEEr at 31 December 2020 31.12.2020 £000 £'ooo 31.12.2019 £'(K)O £'o Notr ASSETS Investment property Dcbtors Cash and bank b212nces Cash equiv21ents Total other assets Total assets 563.279 586,646 13.260 6,730 17.288 9.517 8,809 26,162 44.488 631.134 600,557 LlABILrrtES Creditor$ Distribution payable on incom¢ Units Total liabiltties Ne¢ a8$e¢s attributable to Unitholder$ io 9.341 6.731 6,624 8,905 16,072 584.485 615,605 The financial sca¢ements on page5 37 10 52 have been approved by the Board. Approved on behalf of the Board 19 July 2021 N Morecroft, Chairman The notes on pages 40 to 52 and distribution table on page 53 form part of ¢hese financial statements. 38 Annual Report and Financi21 Stitements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **CASH FLOW STATEMENT** ## **for the year ended 31 December 2020** |||**Year**|**ended**|Year|ended| |---|---|---|---|---|---| |||**31.12.2020**||31.12.2019|| ||_Note_|**£’000**|**£’000**|£’000|£’000| |**Net cash infow from operating activities**|_18_||**25,884**||27,036| |**Servicing of finance**|||||| |Distributions paid|||**(30,479)**||(33,774)| |**Net cash outflow from investment activities**|||||| |Capital expenses||**(4,622)**||(2,518)|| |Payments to acquire investments||**(16,188)**||(84,053)|| |Proceeds on disposal of investments||**11,050**||38,148|| ||||**(9,760)**||(48,423)| |**Net cash inflow from financing activities**|||||| |Issue of Units||**30,154**||85,510|| |Cancellation of Units||**(26,582)**||(46,082)|| |Net revenue received from issue of Units||**(170)**||284|| ||||**3,402**||39,712| |Decrease in cash and cash equivalent|||**(10,953)**||(15,449)| |Opening balance|||**34,971**||50,420| |Closing balance|||**24,018**||34,971| The notes on pages 40 to 52 and distribution table on page 53 form part of these financial statements. 39 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020** ## **1. Accounting policies** ## _(a) Basis of preparation_ The financial statements have been prepared on a going concern basis, in compliance with FRS 102 and in accordance with the the Statement of Recommended Practice for UK Authorised Funds (SORP) issued by the Investment Association in May 2014 (and amended in June 2017) and the Scheme of Charity Commission made under the Charities Act 1993 (amended Charities Act 2011), dated 12 July 2002, as modified by a scheme dated 13 May 2009 and a scheme effective on 21 July 2014, as amended by resolutions of the trustees of the Fund passed under Section 280 of the Charities Act 2011 on 21 July 2014, 22 July 2014 and 29 July 2014 and by an Order dated 9 October 2014 and an Order dated 19 October 2016. The financial statements have been prepared under the historical cost basis, as modified by revaluation of investment porperty. ## _(b) Revenue recognition_ Rental revenue, interest on bank deposits and the COIF Charities Deposit Fund balances are accrued on a daily basis. In accordance with FRS 102, the rent free period is recognised over the entire term of the lease. ## _(c) Expenses_ During the year the annual management charge (AMC) paid to the Manager, was taken to the capital of the Fund. The fee is based on a fixed percentage of the value of the Fund, which is currently 0.65% p.a. plus VAT. Each month, the value at the end of the previous month is taken to calculate the fee due. This fee covers the provision of investment services and other expenses incurred by the Manager. The Fund receives an annual management charge rebate credited to the revenue of the Fund for its deposits in the COIF Charities Deposit Fund, where management fees are charged to revenue. The Trustee fee, audit, legal, insurance, property valuation fees and direct property fees are charged separately to the revenue of the Fund before distribution. ## _(d) Distributions_ Distributions are paid quarterly. The Fund utilises an income reserve to even out the fluctuations in revenue which arise over the years (see note 11). Annual Report and Financial Statements 31 December 2020 40 **COIF CHARITIES PROPERTY FUND** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **for the year ended 31 December 2020** **1. Accounting policies** _**(continued)**_ - _(e) Capitalised costs_ All costs associated with buying, selling and development of properties are charged to capital. Other expenses, including the property valuation fees payable to Knight Frank LLP are deducted from revenue. ## _(f) Basis of valuation_ Freehold and leasehold properties are valued at each monthly dealing date and at quarter end dates on the basis of Fair Value in accordance with the current RICS Appraisal and Valuation Standards (The Red Book) as advised by Knight Frank LLP, Chartered Surveyors. In addition, the Manager reviews these values at each intervening month end and makes adjustments where necessary. Additions to the portfolio are valued externally after acquisition. Please refer to note 21 for more details. ## _(g) Unit pricing policy_ The Fund follows AREF’s fund pricing recommendations and is priced at the Standard NAV. Any adjustments around the Mid Price (Bid/Offer) would follow AREF’s fund pricing recommendations as required. ## _(h) Cash equivalents_ The Manager has treated some assets as Cash equivalents for the purposes of the Balance Sheet disclosure. Investments are regarded as Cash equivalents if they meet all of the following criteria: - highly liquid investments held in sterling that are readily convertible to a known amount of cash; - are subject to an insignificant risk of change in value; and - provide a return no greater than the rate of a three month high quality Government bond. 41 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **NOTES TO THE FINANCIAL STATEMENTS** **for the year ended 31 December 2020** ## **2. Net capital losses** |**Net capital losses**||| |---|---|---| ||**Year ended**|Year ended| ||**31.12.2020**|31.12.2019| ||**£’000**|£’000| |The net capital gains during the year comprise:||| |Unrealised lossess on investment properties*|**(36,086)**|(18,899)| |Realisedgains on investmentproperties*|**2,958**|3,902| |Losses on investment properties|**(33,128)**|(14,997)| - Where net realised gains include gains/(losses) arising in previous periods, a corresponding (loss)/gain is included in unrealised gains/(losses). ## **3. Revenue** ||**Year ended**|Year ended| |---|---|---| ||**31.12.2020**|31.12.2019| ||**£’000**|£’000| |Rental revenue|**35,829**|35,386| |Service charge income|**6,272**|3,050| |Other revenue|**654**|897| |Interest on the COIF Charities Deposit Fund|**125**|318| |Bank interest|**10**|49| ||**42,890**|39,700| |**Expenses**||| ||**Year ended**|Year ended| ||**31.12.2020**|31.12.2019| ||**£’000**|£’000| |_i) Property expenses:_||| |Service charge expenses|**6,951**|4398| |Other property outgoings|**3,115**|876| |Property legal and professional fees|**968**|945| |Property ground rent and empty rates|**608**|1,331| |Propertyrepairs and maintenance|**42**|99| ||**11,684**|7,649| ## **4. Expenses** 42 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **for the year ended 31 December 2020** ## **4. Expenses** _**(continued)**_ |**Expenses****_(continued)_**||| |---|---|---| ||**Year ended**|Year ended| ||**31.12.2020**|31.12.2019| ||**£’000**|£’000| |_ii) Management expenses:_||| |Manager’s annual management charge – see note 1(c)|**3,998**|4,087| |Property valuation fees|**147**|144| |Legal fees|**46**|35| |Investment Property Database fee|**40**|52| |Trustee fee|**36**|36| |Miscellaneous expenses|**25**|172| |Audit fee|**20**|19| |Insurance fee|**7**|6| |Bank charges|**2**|2| |Manager’s annual management charge rebate – see note 1(c)|**(59**)|(64)| ||**4,262**|4,489| |Total expenses|**15,946**|12,138| The above expenses include irrecoverable VAT where applicable. ## **5. Taxation** The Fund has charitable status and is not liable to UK tax on gains arising on disposal of investments or on income from investments. Distributions are paid and reinvested revenue credited gross to Unitholders on the basis that all appropriate UK taxation has been both reclaimed and recovered. Annual Report and Financial Statements 31 December 2020 43 **COIF CHARITIES PROPERTY FUND** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **for the year ended 31 December 2020** ## **6. Finance Costs: interest and distributions** _Distributions_ Distributions take account of revenue received on the issue of Units and revenue deducted on the cancellation of Units, and comprise: ||**Year ended**|Year ended| |---|---|---| ||**31.12.2020**|31.12.2019| ||**£’000**|£’000| |31 March – interim distribution|**8,474**|8,061| |30 June – interim distribution|**6,591**|8,455| |30 September – interim distribution|**6,509**|8,874| |31 December – final distribution|**6,731**|8,905| ||**28,305**|34,295| |Add: revenue deducted on cancellation of Units|**313**|370| |Deduct: revenue received on issue of Units|**(143)**|(654)| |Net distribution for the year|**28,475**|34,011| |Net revenue for the year|**26,911**|27,553| |Transfer (to)/from the income reserve – see note 11|**(2,434)**|2,371| |Manager’speriodic chargepaid bycapital|**3,998**|4,087| |Net distribution for the year|**28,475**|34,011| |Interest for theyear|**33**|9| |Total finance costs|**28,508**|34,020| Details of the distribution per Unit are set out in the distribution table on page 58. Annual Report and Financial Statements 31 December 2020 44 **COIF CHARITIES PROPERTY FUND** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **for the year ended 31 December 2020** |**7.**
**8.**
**9.**|**Investment property**
**Year ended**
Year ended
**31.12.2020**
31.12.2019
**£’000**
£’000| |---|---| ||Market value at the start of the year
**586,646**
553,220
Acquisitions at cost
**16,188**
84,053
Capitalised expenses
**4,577**
2,397
Disposals at cost
**(8,047)**
(34,125)
Unrealised losses on revaluation
**(36,085)**
(18,899)| ||Market value at the end of the year
**563,279**
586,646| ||Historical cost at the end of the year
**558,141**
545,423| ||**Debtors**
**Year ended**
Year ended
**31.12.2020**
31.12.2019
**£’000**
£’000| ||Property incentives
**6,601**
5,692
Rents receivable
**4,950**
3,056
Prepayments
**1,260**
470
Other debtors
**237**
237
Property payments recoverable
**212**
62| ||**13,260**
9,517| ||**Cash and bank balances and Cash equivalents**
**Year ended**
Year ended
**31.12.2020**
31.12.2019
**£’000**
£’000| ||Cash in the COIF Charities Deposit Fund
**17,288**
26,162
Cash at bank
**6,730**
8,809| ||Total cash
**24,018**
34,971| 45 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **for the year ended 31 December 2020** ## **10. Creditors** |**Creditors**||| |---|---|---| ||**Year ended**|Year ended| ||**31.12.2020**|31.12.2019| ||**£’000**|£’000| |Rent received in advance|**4,900**|5,356| |Accrued expenses|**3,454**|674| |VATpayable|**987**|594| ||**9,341**|6,624| ## **11. Income reserve** The income reserve, accumulated out of revenue, is used to smooth fluctuations in the revenue received in the Fund. The income reserve is included in the total capital value of the Fund attributable to Unitholders ||**Year ended**|Year ended| |---|---|---| ||**31.12.2020**|31.12.2019| ||**£’000**|£’000| |Income reserve at the start of the year|**2,335**|4,420| |Transfer to/(from) the income reserve|**2,434**|(2,371)| |Equalisation of the income reserve|**(63)**|286| |Income reserve at the end of the year|**4,706**|2,335| ## **12. Financial instruments** The main risks arising from the Fund’s financial instruments and Manager’s policies for managing these risks are summarised below. These policies have been applied throughout the year and the comparative year. ## _Market price risk_ Whilst the value of direct property is independently valued on a monthly basis, such valuations are a matter of the valuer’s opinion and such values may or may not be achieved on disposal. The Fund seeks to minimise the impact of these risks by maintaining a well diversified property portfolio, both geographically and by sector. Annual Report and Financial Statements 31 December 2020 46 **COIF CHARITIES PROPERTY FUND** ## **NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020** ## **12. Financial instruments** _**(continued)**_ _Market price risk (continued)_ Following the collapse of economic and property market activity as a result of the ongoing COVID19 health crisis and the UK Government containment policies, from the end of March 2020 Until September 2020 property valuers have provided their valuations with a material valuation uncertainty clause. In order to protect the interests of investors, we have suspended dealing in the fund from 24 March 2020 until 24 September 2020. This action reflected the exceptional circumstances in the UK property market and the need to protect investor interests when there was material uncertainty regarding how the assets should be valued. We lifted the suspension as soon as confidence returned to the market and there was more certainty regarding asset valuations. At 31 December 2020, if the price of investment property held by the Fund increased or decreased by 5%, with all other variables remaining constant, then net assets attributable to Unitholders would increase or decrease by approximately £28.16m (2019: £29.33m). ## _Financial assets_ All cash and bank balances earn interest at a floating rate based on either LIBOR or base rate. Debtors and creditors of the Fund do not pay or receive interest. ## _Financial liabilities_ Under the Scheme of the Fund, the Manager may borrow a maximum of 25% of the value of the property of the Fund to assist with investing in, improvements to, or the managing of property and the short-term financing of, or meeting payments to be made out of the Fund. ## _Liquidity risk_ By their very nature, direct properties are less liquid and therefore the investments may not be readily realisable. The Fund’s liquidity may be affected by unexpected or high levels of redemptions. The Units are realisable only on each monthly dealing day but redemptions are subject to a 90 day period of notice, which may be increased to up to six months in accordance with the provisions in the Scheme Particulars. In certain circumstances, the rights for Unitholders to redeem Units may be suspended. Unitholders should note that where a suspension is implemented, they may not be able to redeem their Units as quickly as they would like to, and that this may have an impact on the price they receive on redemption and may consequently impact the Unitholder’s own liquidity. 47 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020** ## **12. Financial instruments** _**(continued)**_ ## _Currency risk_ There is no exposure to foreign currency fluctuations as all investments, revenue and short term debtors and creditors are denominated in sterling. ## _Interest rate risk_ The majority of the Fund’s assets are direct property investments and therefore do not pay interest or have maturity dates. As a consequence any changes in interest rates will not significantly affect the Fund, except in so far as they affect rental levels generally. The total exposure at 31 December 2020 was: |||**Financial assets**|| |---|---|---|---| |**Floating rate**|**Fixed rate**|**not carrying**|| |**financial assets***|**financial assets**|**interest**|**Total**| |**Currency**
**£’000**|**£’000**|**£’000**|**£’000**| |Sterling
**24,018**|**–**|**576,539**|**600,557**| |||**Financial**|| |**Floating rate**|**Fixed rate**|**liabilities**|| |**financial**|**financial**|**not carrying**|| |**liabilities***|**liabilities**|**interest**|**Total**| |**Currency**
**£’000**|**£’000**|**£’000**|**£’000**| |Sterling
**–**|**–**|**16,072**|**16,072**| |The total exposure at 31 December 2019 was:|||| |||Financial assets|| |Floating rate|Fixed rate|not carrying|| |financial assets*|financial assets|interest|Total| |Currency
£’000|£’000|£’000|£’000| |Sterling
34,971|–|596,163|631,134| |||Financial|| |Floating rate|Fixed rate|liabilities|| |financial|financial|not carrying|| |liabilities*|liabilities|interest|Total| |Currency
£’000|£’000|£’000|£’000| |Sterling
–|–|15,529|15,529| * The floating rate financial assets of the Fund earn interest at rates based on either LIBOR or base rate. 48 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **for the year ended 31 December 2020** ## **12. Financial instruments** _**(continued)**_ _Currency risk (continued)_ All financial liabilities are due to be settled within one year or on demand. There were no derivatives held by the Fund during the year or prior year. ## **13. Commitments and contingent liabilities** There were no commitments or contingent liabilities as at 31 December 2020 (31.12.2019 £nil). ## **14. Board remuneration** The Board members receive no remuneration from the COIF Charity Funds. Mr G Newson was a Director of the Manager’s parent company, CCLA Investment Management Limited (CCLA IM) throught the year. Mr Newson received remuneration from CCLA IM, which is disclosed in CCLA IM’s financial statements. ## **15. Related party transactions** The Manager’s periodic charge is paid to the Manager and the Trustee fee is paid to HSBC Bank plc, both related parties to the Fund. The amounts paid in respect of these charges are disclosed in note 4. At 31 December 2020 the balance due to HSBC Bank plc was as set out below: ||**31.12.2020**|31.12.2019| |---|---|---| ||**£’000**|£’000| |Custody and transaction fees|**9**|3| At 31 December 2020, a cash balance of £17,287,765 (31.12.2019, £26,161,876) was held in the COIF Charities Deposit Fund. During the year the Fund received rebates of management fees for its deposits in the COIF Charities Deposit Fund where the management fees were charged to revenue as disclosed in note 4. The COIF Charities Investment Fund has a holding of 105,745,333 Units – 19.79% (2019: 105,559,890 – 19.80%), the COIF Charities Ethical Investment Fund has a holding of 39,091,751 Units – 7.32% (2019: 39,091,751 – 7.33%) and The CBF Church of England Property Fund has a holding of 158,730,980 Units – 29.95% (2019: 159,711,353 – 29.95%). The CBF Church of England Property Fund is also managed by CCLA IM. 49 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **for the year ended 31 December 2020** ## **16. Turnover of Units** The number and net asset value of Units in the Fund issued, cancelled and transferred in the year ended 31 December 2020 and 31 December 2019 are as follows: ||Number|Value|| |---|---|---|---| |31 December 2020|of Units|£’000|% of NAV| |Units issued|25,617,000|30,154|5.16%| |Units cancelled|24,610,351|26,582|4.55%| ||Number|Value|| |31 December 2019|of Units|£’000|% of NAV| |Units issued|71,044,401|85,510|13.89%| |Units cancelled|39,829,017|46,082|7.49%| At 31 December 2020 there were no redemption notices outstanding (31 December 2019, nil). ## **17. Reconciliation of net cash inflow from operating activities** ||**Year ended**|Year ended| |---|---|---| ||**31.12.2020**|31.12.2019| ||**£’000**|£’000| |Net revenue for the year|**26,911**|27,553| |Increase in creditors|**2,716**|1,218| |Increase in accrued revenue|**(1,894)**|(638)| |Increase in debtors|**(1,849)**|(1,097)| |Net cash inflow from operating activities|**25,884**|27,036| ## **18. Reconciliation of net cash flow to movement in cash balances** ||**Year ended**|Year ended| |---|---|---| ||**31.12.2020**|31.12.2019| ||**£’000**|£’000| |Net cash at beginning of the year|**34,971**|50,420| |Movement in cash duringtheyear|**(10,953)**|(15,449)| |Net cash at the end of the year|**24,018**|34,971| 50 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020** ## **19 Unitholders’ funds – reconciliation of Units** |**Unitholders’ funds – reconciliation of Units**||| |---|---|---| ||**Year ended**|Year ended| ||**31.12.20**|31.12.19| |Opening number of Units at beginning of year|**533,227,472**|502,012,088| |Units issued in year|**25,617,000**|71,044,401| |Units cancelled inyear|**(24,610,351)**|(39,829,017)| |Closing number of Units at end of year|**534,234,121**|533,227,472| ## **20. Fair value of financial assets and financial liabilities** In respect of financial assets and liabilities other than investments, there is no material difference between their value, as shown on the balance sheet, and fair value. Investment property is held at fair value. The fair value of all investments are derived from valuation techniques using non-observable data. The Fund’s freehold and leasehold investment properties were independently valued by Knight Frank LLP, Chartered Surveyors, acting in the capacity of external valuers. As described in note 1(f), the valuation was to fair value in accordance with the Professional Standards of The Royal Institution of Chartered Surveyors (the ‘Red Book’). Knight Frank LLP’s opinions were primarily derived from comparable recent market transactions on arm’s length terms. The Manager discusses these valuations with Knight Frank LLP at least once every quarter to assess them. The fair value of investment property has been determined using the following hierarchy: Level 1 The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date. - Level 2 Inputs other than quoted prices included above that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly. - Level 3 Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability. 51 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **for the year ended 31 December 2020** ## **20. Fair value of financial assets and financial liabilities** _**(continued)**_ For the year ended 31 December 2020: ||**Level 1**|**Level 2**|**Level 3**|**Total**| |---|---|---|---|---| |**Category**|**£’000**|**£’000**|**£’000**|**£’000**| |Investmentproperty|**–**|**–**|**563,279**|**563,279**| ||**–**|**–**|**563,279**|**563,279**| For the year ended 31 December 2019: ||Level 1|Level 2|Level 3|Total| |---|---|---|---|---| |Category|£’000|£’000|£’000|£’000| |Investmentproperty|–|–|586,647|586,647| ||–|–|586,647|586,647| 52 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **DISTRIBUTION TABLE** ## **for the year ended 31 December 2020** ||Dividends paid/payable|Dividends paid/payable| |---|---|---| |Period ended Date paid/payable||pence per Unit| ||**2020**|2019| |**Income Units**||| |31 March 29 May|**1.53**|1.53| |30 June 30 August|**1.19**|1.57| |30 September 30 November|**1.22**|1.63| |31 December 26 February|**1.26**|1.67| ||**5.20**|6.40| The distributions for Units were paid in the same year, apart from the distributions declared on 31 December which is payable on 26 February in the subsequent year. Annual Report and Financial Statements 31 December 2020 53 **COIF CHARITIES PROPERTY FUND** ## **STATEMENT OF BOARD, TRUSTEE AND MANAGER RESPONSIBILITIES for the year ended 31 December 2020** ## **Responsibilities of the Board** The Board shall comply with the duty of care when exercising its powers and discharging its duties under the Scheme, as follows: - making and revising the written statement of the investment objectives of the Fund and ensuring that details of such investment objectives will be included in the Scheme Particulars; - determining the criteria and methods for evaluating the performance of the Fund; - granting prior written approval to the Manager should the Manager wish to enter into certain types of investment or a specific course of borrowing on behalf of the Fund; - making representations to the Trustee on the winding up of the Fund, provided that any Board member who has any interests in the Trustee or the Manager shall not participate in the Board’s discussions and decisions on the matter and shall not be counted in the quorum necessary for the transaction of such business; and - informing the Charity Commission promptly and in writing if the Board is not satisfied at any time as to the compliance of the Trustee or the Manager with the Scheme or the Scheme Particulars. Under the Alternative Investment Fund Managers Directive (“AIFMD”), the Board has certain additional responsibilities including: - appointing the Auditor of the Fund and agreeing their terms of engagement; - making an annual report on the discharge of the Board’s responsibilities; - determining the rate of remuneration of the Trustee and the Manager in accordance with the Scheme and the Scheme Particulars; - applying to the Charity Commission for an order to discharge the Trustee from the provisions of the Scheme and an order to appoint a new Trustee of the provisions of the Scheme; - the duty to inform the FCA promptly and in writing if the Board is not satisfied with the compliance of the Trustee or the Manager with the applicable provisions of AIFMD; and - the direct power (without reference to the Charity Commission) to require the removal of the Manager and/or the Trustee where it considers for good and sufficient reason that a change of Manager or Trustee is in the interests of the Unitholders. 54 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **STATEMENT OF BOARD, TRUSTEE AND MANAGER RESPONSIBILITIES for the year ended 31 December 2020** ## **Responsibilities of the Trustee** The Trustee shall be responsible for those aspects of the administration and management of the Fund and its property which are specified in the Scheme. The Trustee shall comply with the duty of care when exercising its powers and discharging its duties. The following are the duties and powers of the Trustee: - the supervision and oversight of the Manager’s compliance with the Scheme and the Scheme Particulars. In particular, the Trustee shall be satisfied that the Manager is competently exercising its powers and discharging its duties under the Scheme, and that the Manager is maintaining adequate and proper records; - the appointment, supervision and oversight of any Registrar or other delegate which it has appointed in accordance with the Scheme; - the making of an annual report on the discharge of its responsibilities for the management of the Fund; and - winding up the Fund. The Trustee shall take all steps and execute all documents as are necessary to ensure that instructions given to it by the Manager are carried out as to the exercise of rights (including voting rights) attaching to the ownership of property of the Fund and that the purchases and sales of investments for or of the Fund are properly completed. The Trustee shall maintain such records as are necessary to enable it to comply with the Scheme and with section 130 of the Charities Act 2011 and to demonstrate that such compliance has been achieved. - the custody and control of the property of the Fund and the collection of all income due to the Fund; - the creation and cancellation of Units as instructed by the Manager (except where the Scheme Particulars permit the Trustee to disregard those instructions); - making distributions or allocations to Unitholders in proportion to their respective Units in the property of the Fund; Annual Report and Financial Statements 31 December 2020 55 **COIF CHARITIES PROPERTY FUND** ## **STATEMENT OF BOARD, TRUSTEE AND MANAGER RESPONSIBILITIES for the year ended 31 December 2020** ## **Responsibilities of the Manager** The Manager shall be responsible for those aspects of the administration and management of the Fund and its property which are specified in the Scheme. The Manager shall comply with the duty of care when exercising its powers and discharging its duties under the Scheme. The following are the duties and powers of the Manager: - instructing the Trustee with respect to the creation and cancellation of Units; - managing the investments of the Fund in conformity with the investment objectives made by the Board; The Manager of the Fund is required by the Scheme to: - prepare and submit to the Charity Commission a statement of accounts and annual report complying with the requirements of the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008, as amended or replaced from time to time; and - prepare and submit to the Charity Commission a half yearly report and accounts for the Fund made up to the date of the interim balance sheet. - ensuring that regular valuations of the property of the Fund are carried out and to ensure that the Units are correctly priced; - the creation and revision of the Scheme Particulars; - maintenance of a daily record of Units purchased or sold on behalf of the Trustee; - the creation of all records in respect of the Fund, available for inspection by the Trustee; - the preparation of reports and accounts in respect of every accounting period; and - the supervision and oversight of any appointed delegate. The Manager is required to: - select suitable accounting policies that are appropriate for the Fund and apply them on a consistent basis; - comply with the disclosure requirements of the Statement of Recommended Practice relating to Authorised Funds issued by the Investment Association in May 2014 (amended in June 2017); - follow generally accepted accounting principles and applicable accounting standards; - keep proper accounting records which enable the Manager to demonstrate that the Financial Statements as prepared comply with the above requirements; 56 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **STATEMENT OF BOARD, TRUSTEE AND MANAGER RESPONSIBILITIES for the year ended 31 December 2020** - make judgments and estimates that are reasonable and prudent; - prepare the Financial Statements on the basis that the Fund will continue in operation, unless it is inappropriate to presume this. - maintain internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; and - taking reasonable steps for the prevention and detection of fraud and irregularities. The Trustee has appointed the Investment Manager to act as Registrar to the Fund. Under AIFMD, the Manager has certain additional responsibilities including, ensuring compliance with the applicable provisions of AIFMD and that any delegation by the Manager is in accordance with AIFMD. Should the Manager wish to retire, the Manager can only be discharged from its duties under the Scheme following the appointment of a replacement manager who is eligible under AIFMD to act as manager of the Fund. Annual Report and Financial Statements 31 December 2020 57 **COIF CHARITIES PROPERTY FUND** ## **STATEMENT OF DEPOSITARY RESPONSIBILITIES AND REPORT OF THE DEPOSITARY for the year ended 31 December 2020** ## **Responsibilities of the Depositary** The Depositary must ensure that the Fund is managed in accordance with the Financial Conduct Authority’s Investment Funds Sourcebook (“the Sourcebook”), the Alternative Investment Fund Managers Directive (“AIFMD”) (together “the Regulations”) and the Fund’s Scheme Particulars. The Depositary must in the context of its role act honestly, fairly, professionally, independently and in the interests of the Fund and its investors. The Depositary is responsible for the safekeeping of the assets of the Fund in accordance with the Regulations. The Depositary must ensure that: - the Fund’s cash flows are properly monitored and that cash of the Fund is booked into the cash accounts in accordance with the Regulations; - that the Fund’s income is applied in accordance with the Regulations; and - the instructions of the Alternative Investment Fund Manager (“the AIFM”) are carried out (unless they conflict with the Regulations). The Depositary also has a duty to take reasonable care to ensure that the Fund is managed in accordance with the Scheme Particulars in relation to the investment and borrowing powers applicable to the Fund. ## **Report of the Depositary** Having carried out such procedures as we consider necessary to discharge our responsibilities as Depositary of the Fund, it is our opinion, based on the information available to us and the explanations provided, that in all material respects the Fund, acting through the AIFM has been managed in accordance with the rules in the Sourcebook, the Scheme Particulars of the Company and as required by the AIFMD. - the sale, issue, repurchase, redemption and cancellation of Units are carried out in accordance with the Regulations; - the assets under management and the net asset value per Unit of the Fund are calculated in accordance with the Regulations; - any consideration relating to transactions in the Fund’s assets is remitted to the Fund within the usual time limits; HSBC Bank plc Trustee and Depositary Services 8 Canada Square London E14 5HQ HSBC Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority 19 July 2021 58 Annual Report and Financial Statements 31 December 2020 **COIF CHARITIES PROPERTY FUND** ## **AIFMD DISCLOSURES (UNAUDITED)** ## **Manager remuneration** The Manager has no employees, but carries out its services through employees of its parent company, CCLA Investment Management Limited. Recharges for these services are levied in respect of CCLA Investment Management Limited’s year ending on 31 March each year. The recharge for the year to 31 March 2020 was £28,700,000. A recharge of £24,000,000 was levied in the year to 31 March 2019. The average number of full time equivalent staff of CCLA Investment Management Limited, including temporary staff, for the year ended 31 March 2020 was 137 (year ended 31 March 2019: 124). During the year ended 31 March 2020 and the prior year , remuneration was paid to CCLA Investment Management Limited staff as shown below. Totals for staff whose actions have material impact on the risk profile of the Fund (“identified staff”) are shown separately. |||**Year to 31 December 2020**|| |---|---|---|---| ||**Fixed**|**Variable**|| ||**remuneration**|**remuneration**|**Total**| ||**£’000**|**£’000**|**£’000**| |Identified staff|**1,355**|**1,870**|**3,225**| |Other staff|**11,605**|**4,422**|**16,027**| |Total|**12,960**|**6,292**|**19,252**| |||Year to 31 December 2019|| ||Fixed|Variable|| ||remuneration|remuneration|Total| ||£’000|£’000|£’000| |Identified staff|1,212|3,394|4,606| |Other staff|9,824|3,412|13,236| |Total|11,036|6,806|17,842| Remuneration above is the total remuneration for CCLA Investment Management Limited: it is not possible to separate the element of that relating only to the Fund. The components of remuneration are appropriately balanced and do not create a conflict of interest for the Fund. Annual Report and Financial Statements 31 December 2020 59 **COIF CHARITIES PROPERTY FUND** ## **(Charity Registration No. 1093084)** ## **DIRECTORY** ## **Board** N Morecroft, ASIP (Chairman) K Corrigan, FCCA J Hobart, MA G Newson, MRICS S Niven, CFA C Ong, MBA A Watson, CBE ## **Secretary** J Fox ## **Manager/Alternative Investment Fund Manager (AIFM)** CCLA Fund Managers Limited _Authorised and regulated by the Financial Conduct Authority_ Senator House, 85 Queen Victoria Street London EC4V 4ET Telephone: 0207 489 6000 Client Service: Freephone: 0800 022 3505 Email: clientservices@ccla.co.uk www.ccla.co.uk ## **Investment Manager, Administrator and Registrar** CCLA Investment Management Limited _Authorised and regulated by the Financial Conduct Authority_ Senator House, 85 Queen Victoria Street London EC4V 4ET Telephone: 0207 489 6000 Client Service: Freephone: 0800 022 3505 Email: clientservices@ccla.co.uk www.ccla.co.uk ## **Executive Directors of the Manager** P Hugh Smith (Chief Executive Officer) J Bevan (Chief Investment Officer) E Sheldon (Chief Operating Officer) A Robinson, MBE (Director Market Development) ## **Non-Executive Directors of the Manager** R Horlick (Chair) J Jesty – appointed 24 April 2020 C Johnson G Newson A Roughead – appointed 24 April 2020 J Tattersall – retired 8 July 2020 _**Fund Manager**_ P Hannam _**Head of Risk**_ R Plumridge – resigned 31 January 2020 JP Lim – appointed 1 May 2020 _**Head of Ethical and Responsible Investment**_ J Corah _**Head of Risk**_ R Plumridge – resigned 31 January 2020 JP Lim – appointed 1 May 2020 **Third Party Advisors** _**External Property Valuer**_ Knight Frank 55 Baker Street London W1U 8AN _**Managing Agent**_ BNP Paribas Real Estate 5 Aldermanbury Square London EC2V 7BP _**Custodian, Trustee and Depositary**_ HSBC Bank plc 8 Canada Square Canary Wharf London E14 5HQ _**Banker**_ HSBC Bank plc 60 Queen Victoria Street London EC4N 4TR _**Solicitors**_ Farrer & Co LLP 66 Lincoln’s Inn Fields London WC2A 3LH Hogan Lovells International LLP Atlantic House, Holborn Viaduct London EC1A 2FG DLA Piper Scotland LLP Collins House Rutland Square Edinburgh EH1 2AA _**Independent Auditor**_ PricewaterhouseCoopers LLP 7 More London Riverside London SE1 2RT _**Company Secretary**_ J Fox 60 Annual Report and Financial Statements 31 December 2020 ## **ABOUT CCLA** Founded in 1958, CCLA is one of the UK’s largest charity fund managers. Managing investments for charities, religious organisations and the public sector is all that we do. Our purpose is to help our clients maximise their impact on society by harnessing the power of investment markets. This requires us to provide a supportive and stable environment for our staff and deliver trusted, responsibly managed and strongly performing products and services to all organisations, irrespective of their size. ## **CCLA Fund Managers Limited** Senator House, 85 Queen Victoria Street, London EC4V 4ET T: 0800 022 3505 E: clientservices@ccla.co.uk ## **www.ccla.co.uk** Both companies are authorised and regulated by the Financial Conduct Authority.Registered address: Senator House, 85 Queen Victoria Street, London EC4V 4ET. CCLA is the trading name for CCLA Investment Management Limited (Registered in England No. 2183088) and CCLA Fund Managers Limited (Registered in England No. 8735639) Printed on 100% post consumer waste and is certified by the Forest Stewardship Council (FSC).