Janus Henderson UK Property A (PAIF)

The fund generally holds three-quarters in UK commercial property located principally in the South East of England, with the balance in cash and UK listed property company shares.

  • 95.29p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 228.98p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 5.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.50%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.69%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.80%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 18 September 2020, fund data last updated 11 February 2016

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 are in bricks and mortar property, with the balance in cash and UK listed property company shares. The focus is mainly on prime bricks and mortar properties, located principally in the South East of England. Investors should note that the management group reserves the right to swing the unit price without notice to reflect net fund flows.

Fund summary

Sector UK Direct Property
Structure OEIC
Launched August, 2014
Size £0m
Yield 0.80%
Charging basis Capital
Dividends paid 31 Jan, 30 Apr, 31 Jul, 31 Oct

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.21%
Annual management charge 1.50%
Ongoing charges figure 1.69%

Allocation

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Investment process

The fund manager's strategy is to focus predominantly on prime (as opposed to secondary) bricks and mortar property assets. The portfolio managers apply research over the long and the short term, to identify those property sectors where outperformance is expected and where they feel they can best add value. Once purchased, properties are actively managed by a dedicated team of experienced investment professionals. Opportunities to add value include legal and physical improvements e.g. improving lease structures, diversifying tenant mix, refurbishments and amending planning consents. The team uses a four stage approach; Strategy, Target, Analyse and Return (“Star”). Strategy: identify an attractive overall opportunity; find the best way to access that opportunity; estimate its risk/return profile. Target: top-down macro analysis to select target markets. Analyse: build a live portfolio. Return: ongoing monitoring of investments. The investment process is agnostic of market conditions and is intended to be stable and robust through rising and falling value cycles, to which the UK property market is prone.

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.20% 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 merged with the Old Mutual Property fund in early 2015; adding an additional 24 properties which offer asset management opportunities. The large size of the fund may limit its ability to buy smaller properties in the UK regions where there is more scope for capital value growth.

Manager research

Average monthly relative returns

  • 15/16 -0.84%
  • 16/17 -0.08%
  • 17/18 -0.13%
  • 18/19 -0.04%
  • 19/20 -8.03%

Bestinvest MRI

  • 3 years -2.73%
  • 5 years -1.82%
  • Career -0.99%
  • 3 years 17.10%
  • 5 years 14.90%
  • Career 11.90%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Marcus Langlands Pearse / Ainslie McLennan

•Langlands Pearse has been working in commercial property since 1991. He worked at HypoVereinsbank on their property investment and property finance teams for 8 years. He then moved into private equity with a property focus for 4 years. He joined New Star in September 2003 and graduated from Assistant Fund Manager to Director of UK Property. He joined Henderson on the acquisition of New Star and is now the Lead Fund Manager on the Henderson UK Property fund and a Director of UK Property. •McLennan began her career in 1996 working in the Investment Department at Ryden Property Consultants in Edinburgh qualifying as a Chartered Surveyor in 1998. In 2001 she joined PJ Leggate & Co where she was involved with acquiring and managing a portfolio of commercial property. In 2002 McLennan joined Henderson Global Investors running both UK commercial and residential property portfolios.

Track record

Marcus Langlands Pearse / Ainslie Mclennan has 11.2 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.99%. During the worst period of relative performance (from November 2009 - August 2020) there was a decline of 100% relative to the index. The worst absolute loss has been 10%.

Periods of worst performance

Absolute -10.00% (April 2016 - July 2016)
Relative -100.00% (November 2009 - August 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

5.2624% Capital Business Park, Cambridge
3.6447% Dalton Park, Murton, Durham
3.4155% K & N, Derby Commercial Park, Derby
3.4019% Data Centre, 3 King George Close, Romford
2.8085% Luton, Bilton Way (Entity), Luton
2.7881% Tower Retail Park, Crayford
2.7826% Robin Shopping Park, Wigan
2.743% Long Crendon Industrial Estate, Thame
2.4934%2-14 Bunhill Row, City
2.4607% Kidwells Park, Maidenhead
Source: Trustnet

Sector breakdown

Retail - Property 25.00%
Industrial - Property 24.00%
Money Market 20.00%
Offices - Property 17.00%
Other - Property 15.00%

Portfolio

Portfolio as at 31/12/17: Fund size £3bn, average lease length 10.9yrs; number of properties 133; void 2.5%; offices 27.3%; retail 27.5%; industrial 17.1%.

Constraints

Asset Allocation: up to 20% property shares; 15-25% cash; 5% fixed interest; balance in bricks and mortar property.

Key Investor Information - Income

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Key Investor Information - Accumulation

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