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Janus Henderson property fund suspension

On 17 March 2020, the Janus Henderson UK Property PAIF fund suspended trading. The fund is currently held within several Quilter Investors portfolios.

Why has this happened?

The reason for the suspension is that CBRE, the appointed independent valuer of the fund’s direct property holdings, have material uncertainty around the valuation of UK properties across the market, and therefore certain assets held within the fund, due to the impact of coronavirus.

This decision is consistent with new rules issued by the Financial Conduct Authority (FCA), under which, in the best interest of investors, a fund must temporarily suspend dealing if a valuation is materially uncertain for 20% or more of the assets held in the fund. A period of suspension will allow the independent valuer to better understand the impact that the coronavirus crisis is having on direct property market valuations.

This suspension differs from those in 2016, where the driver was a lack of liquidity (cash) being held within some property funds to meet client redemption requests. The Janus Henderson UK Property PAIF held around 17% in cash as at 29 February 2020.

What does this mean for investors?

The Quilter Investors portfolios holding the Janus Henderson UK Property PAIF as at 29 February 2020 are shown below:

Quilter Investors Portfolio Percentage holding in Janus Henderson UK Property PAIF
Quilter Investors Monthly Income Portfolio 1.00%
Quilter Investors Generation CPI +3 Portfolio 0.60%
Quilter Investors Generation CPI +4 Portfolio 1.16%
Quilter Investors Generation CPI +5 Portfolio 0.26%
Quilter Investors Creation Conservative Portfolio 2.41%
Quilter Investors Creation Balanced Portfolio 2.44%
Quilter Investors Creation Moderate Portfolio 2.53%
Quilter Investors Creation Dynamic Portfolio 1.23%

The Quilter Investors portfolios listed above are all diversified multi-asset portfolios and the suspension of the fund does not have an impact on the overall portfolios ability to operate. Janus Henderson has confirmed that income distributions from the Janus Henderson UK Property PAIF will continue throughout the period of suspension. Also, given the unitised OEIC structure of the portfolios listed above, clients can still redeem their holdings whilst the Janus Henderson UK Property PAIF is suspended.

When will the Janus Henderson UK Property PAIF open again?

The suspension has been implemented to safeguard the interests of all investors. The dealing suspension will allow the valuer of the fund to better understand the impact the coronavirus crisis is having on direct property market valuations.

Janus Henderson will announce a date for the re-opening of the fund when this period of material uncertainty has passed and property valuations are more certain. The suspension will cease as soon as practicable and will be formally reviewed at least every 28 days. We will provide further updates when we hear more information from Janus Henderson. If you have any questions, please contact the investment directors on 0207 167 3700 or email enquiries@quilterinvestors.com.