Pooled funds (CCLA, multi-asset)
About this course
Property funds, multi-asset income funds, the CCLA range. Return profile, risk budget, total-return view, accounting under IFRS 9 statutory override.
What you'll learn
- What pooled funds are
- Total return
- Use cases
- Accounting
- TMSS & governance
Part of these pathways
Related courses
- SONIA Forward Curve & OIS
- Money Market Funds (CNAV / LVNAV / VNAV)
- Short-duration bond funds & VNAVs
- Intra-LA borrowing & lending markets
- DMADF deep dive
- Term deposits, CDs & T-Bills
Common questions
What is Capital-volatility horizon?
Property funds in particular show substantial year-to-year capital volatility: −10% in a stress year, +5% in a recovery year. Across 5+ years the volatility typically averages out to a small positive contribution. Holding-period horizon needs to match this.
What is CCLA Diversified Income Fund?
Multi-asset income fund holding mixed equities, bonds, alternatives and property. Income yield typically 3-4%; total return varies with markets. Daily dealing. Smaller LA usage than LAPF but established option.
What is CCLA Local Authorities' Property Fund (LAPF)?
Long-running collective fund holding a diversified portfolio of UK commercial property. Available exclusively to local authorities, charities and certain public bodies. Typically 50-100+ properties; quarterly dealing; income yield 4-5% gross; capital return varies materially by year.
What is CCLA Public Sector Deposit Fund (PSDF)?
AAAm-rated MMF run by CCLA exclusively for public-sector clients. Functions like other LVNAVs but with a public-sector-only investor base. Real-time same-day liquidity; standard MMFR framework.
What is Five LA use cases?
(1) Genuinely long-term reserves, (2) Strategic income generator vs MMF cash returns, (3) Diversification away from bank credit, (4) Property exposure without direct holding, (5) Multi-asset diversification for cash-rich councils.
What is FVTPL + statutory override?
IFRS 9 default classification for most pooled funds is FVTPL — daily fair value changes hit P&L. The 2018-2024 LA statutory override allowed councils to defer unrealised capital movements on certain pooled funds; the override has been extended in stages and remains a key topic for any LA holding pooled funds.