Today the Board of the Funds’ Authorised Corporate Director (ACD)/Manager has exchanged contracts with the selected single purchaser of the Fund’s direct property portfolio. The sale price is above the most recent independent valuation used to price the Funds. We believe this provides a good outcome for investors given the ongoing uncertainty faced by daily dealing property funds (as explained in our letter of 4 March 2022).
Putting the Funds into termination now is necessary to protect the Fund’s PAIF status, to allow completion of the property sale and preparation of the payment of proceeds to investors. There are a number of activities that need to take place between exchange of contracts and completion of the sale and precise timing of completion is therefore uncertain. We currently expect the property portfolio sale process to complete in the week commencing 30 May 2022. We hope to be in a position to instruct the payment of proceeds roughly two weeks after the completion date and currently estimate this to be in the week commencing 13 June 2022. We will confirm these dates via our website.
This payment will be made up of the net proceeds from the property sale and the remaining cash held by the Fund. The costs involved in selling the direct portfolio of properties will be borne by the Funds and estimated costs for this are already reflected in the ‘bid’ price (the published price at which shares/units are redeemed). The administrative costs of terminating the Funds will be borne by Janus Henderson.
The process of putting the Funds into termination requires an additional income distribution. This will be calculated as at the date termination commences (today). For income share/unit holders this will be paid within two months of this date 28 June 2022. For accumulation share/unit holders, this amount will form part of the proceeds returned to them.
It may be necessary to make subsequent payments to you. These would be the balance arising from any future outstanding amounts due to the Funds being collected and any outstanding payments being made from the Funds. We will write to you again in advance of any future payments.
Action you can take
Unless you hold your investment in a Janus Henderson ISA (see section below), unfortunately, there is no opportunity to switch into another Janus Henderson fund because the PAIF and its Feeder Fund move straight from suspension into termination. However, there will be no charge should you wish to reinvest your proceeds, once received, into another Janus Henderson fund. You will need to instruct any purchase in a new fund. Please contact us using the details provided below if you require any assistance.
Payment of proceeds to you may be delayed if we do not have your correct bank account details or if there is any outstanding documentation relating to your account. Please do not hesitate to contact us, using the details provided below, to check. Unless you hold your investment in a tax efficient wrapper (such as an ISA or a SIPP), the return of proceeds to investors will be treated as a ‘disposal’ for UK tax purposes and you may be liable to capital gains tax on any gains arising.
Janus Henderson ISA Investors only
Please note that we will retain the proceeds for investors who hold the Janus Henderson UK Property PAIF through a Janus Henderson ISA for a period of up to six months from the date of this notice. This will preserve the ISA status of those proceeds and allow you sufficient time to decide what to do next.
As an ISA investor, you are required to review and complete a form of direction (see link below), which sets out the options available to you and the actions you may need to take. If you are unsure about what to do, please consult a financial adviser. If you do not have a financial adviser, then you can obtain details of independent financial advisers in your area by visiting www.unbiased.co.uk.
If you do not provide instructions to us within a period of six months, your proceeds will be returned to you and you will lose your ISA status on that amount.
We will, of course, continue to keep you up to date with any significant developments in the interim and will provide additional information here. If you have any queries about the closure or require any further information, please contact your financial adviser or call our Client Services Team on 0800 832 832 (or +44 1268 443 914 if you are calling from overseas) between 9am and 5.30pm Monday to Friday.