Henderson revaluation hits UK Property fund investors
Henderson Global Investors has moved its £4.1bn UK Property vehicle from offer to bid pricing in the latest sign of changing fortunes for property portfolios.
The shift effectively wipes around 5 per cent off returns, costing investors wishing to redeem positions, and follows net retail outflows for the Investment Association’s Property sector this year.
However, the change to bid price does mean a lower entry price for new investors in the fund.
The sector suffered net retail outflows of £119m in February this year – the largest since November 2008 – and £20m was lost during March, contributing to total outflows of £166m during the first quarter of this year.
Henderson said in a statement: “The decision reflects an expectation that the trend for client net fund flow for the foreseeable future will be in the range of broadly stable to moderately net negative.”
The fund house added: “It is important to note that the pricing basis decision for a dual-priced UK commercial property fund is not related to the liquidity position of the fund.
“It is about being fair both to transacting clients and to clients who remain invested in the fund.”
The company said the portfolio, run by Ainslie McLennan and Marcus Langlands Pearse, has “significant diversity” in terms of both its investor base and its property holdings, as well as “material” allocations to cash and property equity assets.
Earlier this year Aberdeen Asset Management shifted its own Property Trust from offer pricing to a mid-price basis, a change equating to a 3.8 per cent loss for those exiting the fund.
This came as a result of the trust’s investor protection committee predicting “broadly neutral” fund flows for the vehicle in future.
