Summary of the change in pricing approach

The Janus Henderson UK Property PAIF and the Janus Henderson UK Property PAIF Feeder Fund (“the Funds”) will change from being dual priced on a quoted-spread basis to being dual priced on a full-spread basis, with effect from 25 March 2019.

Dual priced on a quoted-spread basis means a separate buying (quoted offer) price and selling (quoted bid) price are set with a narrower spread than the full spread. The basis for these prices varies depending on supply and demand for the shares/units of the Funds. Dual priced on a full-spread basis means that the spread is more stable and fully reflects the costs of buying and selling properties.

Key points to note are:

  • During the second half of 2017 and the first half of 2018, the Funds experienced an increased number of pricing basis changes (see the graph below)
  • These movements had nothing to do with the underlying value of the property investments and were solely down to the changing pattern of money flowing into and out of the Funds, which we believe to be unsettling and potentially confusing for investors
  • When we change our approach to pricing for the Funds, the price at which you can sell your shares/units will not be impacted as the Funds are currently being priced on a bid basis
  • The buying (quoted offer) price will continue to be higher than the selling (quoted bid) price and will fully reflect the costs of buying and selling properties. The Funds (non-transacting investors) will ultimately benefit from the full spread
  • Investors will lose the opportunity to buy shares/units at a lower price when the Funds are on a bid basis or redeem shares at a higher price when the Funds are being priced on an offer basis
  • Overall, we believe the change will be in the best interests of investors and we set out the benefits in more detail in this letter

Please continue reading this letter for a full explanation behind the change of pricing approach.

A video update providing further information can be found below.

 

Investor Letter

Change in pricing approach for UK Property PAIF / Feeder Fund

A Simple Guide to Fund Pricing