Fund suspension - Janus Henderson UK Property PAIF
Janus Henderson has announced that with effect from the 12-noon valuation point on 3 March 2022 the Janus Henderson UK Property PAIF (the "Fund") has been suspended.
Impacts on
this defined fund range product
Impacts on
open architecture products, including:
- PIMS
- Choice
- Select
The ongoing uncertainty in the UK over the future of open-ended funds invested in direct (physical) property within a daily-dealing structure has led to persistent net redemptions from the Fund, despite its strong relative and absolute performance. Janus Henderson has been monitoring this carefully and has become concerned that if future events continue or accelerate this trend, the Fund is likely to shrink to a size where it is no longer viable.
Throughout the recent fund suspensions, the Fund has remained focused on holding a strong portfolio of assets with a mix of robust tenants on long leases across all sectors. However, the continuing need to sell property to cover the redemptions will ultimately lead to the disposal of the most in demand and liquid properties within the portfolio. This in turn will negatively impact the Fund’s strong characteristics and most likely lead to weaker performance, reduced levels of rental income and an increase in fund price volatility for investors. This would further compound redemptions and undermine returns for clients that remain invested in the Fund because of the diminishing strength of the property portfolio.
Therefore, Janus Henderson believes it is in the best interests of investors in the Fund that it takes proactive steps now to secure a better outcome. Having researched a broad range of options, Janus Henderson believe the best solution is to promptly sell the portfolio of the Janus Henderson UK Property PAIF to a single buyer.
The sale process is ongoing and therefore Janus Henderson cannot currently confirm that such a sale will go ahead or provide a firm completion date. Janus Henderson is optimistic that it can achieve a sale and that the sale could be finalised towards the end of March/early April 2022. On the basis that the property transaction completes, Janus Henderson would then need to undertake a number of administrative activities in relation to the Fund in preparation for the return of proceeds to investors, which it anticipates would be at the end of April 2022.
Janus Henderson have provided a webpage that gives updates on the status of the fund.