Termination of Janus Henderson UK Property: what action you need to take

12 May 2022 – Janus Henderson announced this week that the sale of its property fund assets has now progressed and it has begun the process of closing the fund so that the proceeds can be returned to investors.

In March this year, the company announced that it had suspended the Janus Henderson UK Property PAIF in order to allow the managers to sell the portfolio to a single buyer and return assets to investors.

The decision was reached by the board of Henderson Investment Fund due to various factors including the ongoing uncertainty over the future of open-ended property funds as the Financial Conduct Authority looks set to impose mandatory notice periods for redemptions.

The board said that these developments have "reduced assets under management materially to the point of challenging the portfolio's future shape and quality, along with expected returns to investors".

Head of UK retail Simon Hillenbrand said at the time: "Having researched a number of options, we believe the best solution is to promptly execute the sale of all of the Janus Henderson UK Property PAIF's property assets to a single buyer. The net proceeds will then be distributed to investors according to their holdings.”

Exchange of contract

On 28 April 2022 Janus Henderson exchanged contracts with the selected single purchaser of the fund’s direct property portfolio.

There are several activities that need to take place between exchange of contracts and completion of the sale and precise timing of completion is therefore uncertain. However, Janus Henderson hopes to be able to instruct the payment of proceeds by the end of June 2022.

To ensure the fair treatment of all investors throughout the closure process, Janus Henderson have advised that it is necessary to continue the suspension of all dealing in the fund. This will enable the properties held by the fund to be sold in an orderly manner and ensure that all investors share equitably in those net sale proceeds.

What happens now?

Janus Henderson has not yet announced the final unit price of the fund but has said that the sale price of the property assets is above the most recent independent valuation. This is a good outcome for investors because it should be at a premium to the current unit price. However, please note that the unit price is not yet confirmed.

If you are an investor in the fund, we have written to you this week with details on what to do next.

Once the proceeds are paid by Janus Henderson, they will be held in cash for you and you may therefore wish to send us your investment instructions now. Should you wish to switch into an alternative fund(s) please either manage your account online or call us on 020 7384 7300.

Chelsea Financial Services does not offer any advice, but you may wish to refer to your March edition of Viewpoint for ideas. You may also be interested in the award-winning VT Chelsea Managed funds or the Chelsea Core Selection.