Janus Henderson fund closure an 'ill omen' for wounded open-ended property sector

“Exacerbated redemptions”

James Baxter-Derrington
clock • 3 min read
AJ Bell's Laith Khalaf suggested “there might not be too much of a property sector left
Image:

AJ Bell's Laith Khalaf suggested “there might not be too much of a property sector left

The recent suspension of Janus Henderson’s UK Property PAIF is “another nail in the coffin” for the open-ended UK direct property sector, which has faced outflows since its widespread suspensions, first in the wake of 2016’s Brexit vote and then as a result of 2020’s coronavirus lockdowns.

Janus Henderson's letter to investors explained that the closure of its £1bn fund was tied to the "ongoing uncertainty" around the future of the structure, as the industry awaits the Financial Conduct Authority's conclusion to its review of daily dealing products holding illiquid assets. This review has "exacerbated redemptions", according to Rathbones head of multi-asset investments David Coombs, who questioned whether the sector's final moments were looming. "We should be asking if the structure's days are numbered and if illiquid assets in retail daily dealing open-ended structures...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Property

Issuing shares at 117p per share.

Impact Healthcare REIT issues new equity to acquire care homes as inflation rises

Impact Healthcare REIT is raising new equity, the target amount of which has not been stated, to acquire a pipeline of care homes, as investors scramble to protect investments from rising inflation.

clock 22 June 2022 • 2 min read
Some funds have been retained in order to finance commitments to “ongoing asset management initiatives”.

Aegon issues fifth distribution as property fund wind-up approaches anniversary

Further £18m

James Baxter-Derrington
clock 14 June 2022 • 1 min read
Three-fourths of all AuM in mutual funds and ETFs sits in legacy products today.

Majority of global AuM in mutual funds and ETFs sits in legacy products

New funds struggle to stand out

clock 24 May 2022 • 2 min read
Trustpilot