Henderson New Star is lifting the dealing suspension on the New Star International Property Fund on 12th February 2010. This means investors will once again be able to buy and sell units in the fund.
Since dealing in the fund was suspended on 25th November 2008, the fund’s managers have been selling properties in order to raise cash to meet redemption requests. This has taken some time because of the lengthy process of finding buyers and selling properties. Furthermore, in order to ensure fair treatment of investors it was necessary to make sure a reasonable price was obtained for the properties, rather than selling as quickly as possible.
Henderson New Star is now confident that the fund has sufficient cash to resume normal dealing. The fund is expected to have more than 20% cash when it reopens in February, with a view to maintaining around 15-20% cash over the longer term.
Investors who have previously requested to sell their units in the fund will see this order placed on 12th February. However, as there have been signs of a recovery in international property markets, Henderson is allowing investors to change their mind. If you no longer wish to sell, we must receive your instruction by close of business on 8th February 2010. Please contact our Helpdesk on 0117 900 9000 with your Master Password to hand if you wish to cancel an existing instruction.
Henderson is also making a change to the fund’s strategy. The fund’s currency exposure will no longer be ‘hedged’, because it believes that currency movements should even themselves out over the long term. In the short term, however, this could affect overall returns. If the currency of a country where the fund owns properties appreciates, this will enhance returns in Sterling terms. However, the reverse is also true, and if this happens the returns might look worse given that the fund currently only has a small yield and therefore offers little in the way of a buffer.
The re-opening of the fund is clearly good news for investors after a difficult period for the international commercial property market.
Since dealing in the fund was suspended on 25th November 2008, the fund’s managers have been selling properties in order to raise cash to meet redemption requests. This has taken some time because of the lengthy process of finding buyers and selling properties. Furthermore, in order to ensure fair treatment of investors it was necessary to make sure a reasonable price was obtained for the properties, rather than selling as quickly as possible.
Henderson New Star is now confident that the fund has sufficient cash to resume normal dealing. The fund is expected to have more than 20% cash when it reopens in February, with a view to maintaining around 15-20% cash over the longer term.
Investors who have previously requested to sell their units in the fund will see this order placed on 12th February. However, as there have been signs of a recovery in international property markets, Henderson is allowing investors to change their mind. If you no longer wish to sell, we must receive your instruction by close of business on 8th February 2010. Please contact our Helpdesk on 0117 900 9000 with your Master Password to hand if you wish to cancel an existing instruction.
Henderson is also making a change to the fund’s strategy. The fund’s currency exposure will no longer be ‘hedged’, because it believes that currency movements should even themselves out over the long term. In the short term, however, this could affect overall returns. If the currency of a country where the fund owns properties appreciates, this will enhance returns in Sterling terms. However, the reverse is also true, and if this happens the returns might look worse given that the fund currently only has a small yield and therefore offers little in the way of a buffer.
The re-opening of the fund is clearly good news for investors after a difficult period for the international commercial property market.
