DEALING SUSPENSION UPDATE
Janus Henderson UK Property PAIF (the Fund) and its Feeder Fund remain suspended for dealing – 6 November 2020
Since the last formal dealing suspension review in October we have continued to closely monitor the UK commercial property market. Since the last formal suspension review update, the team have continued to make progress on property sales with a number of deals now nearing completion. Additionally, some other positive progress has been made with several sales moving to being under offer. The property transaction market remains challenging and there are still chances of delays or withdrawals from transactions. Sales are across a number of different property sectors/tenant profiles to maintain the characteristics of the Fund, 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 property market conditions, the uncertainty surrounding the looming Brexit deadline, the Financial Conduct Authority’s recent consultation, and now HMRC’s consultation, surrounding 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.
The Fund aims to provide a high and increasing level of income as well as capital growth over the long term (5 years or more). The Fund is a dedicated Feeder Fund to the Janus Henderson UK Property PAIF.
The Fund provides exposure to UK commercial real estate by investing (in normal circumstances) solely in the Janus Henderson UK Property PAIF (the Master Fund). The investment returns of the Fund will be very similar to those of the Master Fund, though could differ because the funds are treated differently for tax purposes and because the Fund may not be wholly invested in the Master Fund at all times due to the need to hold cash for administrative purposes (e.g. the payment of fees and distributions).
The Fund may also hold cash.
The investment manager may use derivatives (complex financial instruments) to reduce risk or to manage the Fund more efficiently.
The Fund is actively managed with reference to the IA UK Direct Property sector average, which is based on a peer group of broadly similar funds, as this can provide a useful comparator for assessing the Fund’s performance.
About the feeder fund
The Janus Henderson UK Property PAIF Feeder Fund is a unit trust for those investors who cannot, or do not wish to, invest directly in the Janus Henderson UK Property PAIF. The Feeder Fund solely invests in shares in the PAIF and should therefore broadly perform in line with the PAIF. Further information on the PAIF, fund literature and manager updates can be found on the main UK Property PAIF fund page.