Since the last formal dealing suspension review in September we have continued to closely monitor the UK commercial property market. As previously advised in our last update, the Janus Henderson UK Property PAIF’s (the Fund) end of September property valuations are now free from material uncertainty. However, the ability of the Fund’s investment management team to transact in the property market continues to be impacted by the COVID-19 pandemic. The team have completed one property sale in the last 28 days and continue to press forward with further carefully selected sales that ensure the characteristics of the Fund are not unduly compromised, thereby balancing the interests of investors who wish to remain invested in the Fund (or its Feeder) and those who want to redeem.

The Board of Henderson Investment Funds Limited, which is the authorised corporate director (ACD) for the Fund, has again formally reviewed the dealing suspension. The Board has agreed with the Fund’s depositary that the Janus Henderson UK Property PAIF (and its Feeder Fund) should remain suspended due to the need to further raise liquidity to meet known redemptions from the funds and to have sufficient liquidity to substantially reduce the risk of re-suspension in the short term. Given the challenging market conditions, the uncertainty surrounding the looming Brexit deadline, and the Financial Conduct Authority’s consultation on introducing notice periods on redemptions for open-ended property funds, the PAIF and its Feeder Fund may not be in a position to reopen until the first quarter of 2021.

The dealing suspension, therefore, remains in place until further notice. The situation and progress on property sales will continue to be monitored closely by the ACD to ensure the funds are well placed to meet redemption requests on reopening and that the characteristics of the fund are maintained. A further update will be provided within the next 28 days, or sooner should the situation change.