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HENDERSON UK PROPERTY A - Fund overview

Bestinvest rating 4 stars


Overview of HENDERSON UK PROPERTY A

The fund aims to achieve a high income together with some growth of both income and capital through investment primarily in commercial property and property-related assets. Approximately three-quarters of its assets directly in bricks and mortar property with the balance in cash and UK listed property company shares. The focus is mainly on prime (as opposed to secondary) bricks and mortar properties, located principally in the South East of England. The current portfolio is overweight to regional offices and lower risk tenants.
Investors should note that the management group reserves the right to swing the unit price without notice to reflect net fund flows. The property market can be illiquid; consequently, there can be times when investors in property funds will be unable to sell their holdings. Property valuations are subjective and a matter of judgement.

Standard Initial Charge

5.00% 0.00%

Fund summary

Sector  Property
Product type  OEIC
Launched  June, 1999
Size  £2,246m
Yield 3.5%
Charging basis  Capital
Dividends paid  31/01, 30/04, 31/07, 31/10
Bid price(inc) 99.45p 3.12p
Bid price(acc) 198.12p 11.45p

Fund Charges

Standard Initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.24%
Annual management charge 1.50%
Total expense ratio 1.70%
Reduction in yield (10yr) 1.72%

Bestinvest says


The portfolio consists of 77 quality properties, negligible voids and long leases. Around 60% of the portfolio is invested in the South East. It also has an above average allocation to higher quality tenants. It has c.25% in cash which gives it flexibility to invest quickly and to meet redemption requests, but could also be a drag on performance and dividends. This fund will be merging with the Old Mutual Property fund, which completes in early 2015. This will add to the numbers of properties and tenants that will need managing. In November 2014 we reduced the rating of this fund from 5 to 4 stars, to reflect the cash drag on performance, the large size of the fund limiting its ability to buy smaller properties in the UK regions where there is more scope for capital value growth.

Portfolio

henderson uk property a asset allocation illustration
Allocation Proportion
Equity 4%
High yield bonds 0%
Quality bonds 0%
Property 83%
Commodities 0%
Hedge 0%
Fund cash 13%
henderson uk property a equity geographic illustration
Allocation Proportion
UK 100%
Europe 0%
Nth America 0%
Japan 0%
Pacific 0%
Other Equity 0%
henderson uk property a equity capitalisation illustration
Allocation Proportion
Large Caps 56%
Mid Caps 44%
Small Caps 0%

Investment process


The fund manager's strategy is to focus predominantly on prime (as opposed to secondary) bricks and mortar property assets, located principally in the South East of England, which also stand to benefit from the existing planning restrictions. The current portfolio contains an overweight to regional offices and lower risks tenants. Average weighted lease length is in line with the IPD index.

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