Henderson has lifted the suspension on its UK Property Trust to allow clients to trade with effect from 12 noon on 14th October 2016.
Trading in the fund was suspended on 5 July 2016 as the managers received a large number of requests from investors to sell their investment. Property funds hold a cash buffer to satisfy sales, which is usually sufficient to ensure the managers are not forced to sell properties. However, the increase in requests after the EU referendum was such that the cash buffer was reduced to a level the managers were not happy with.
Henderson therefore temporarily stopped investors selling (or buying) units in the fund to afford the managers time to find suitable buyers for some of their properties. If forced to sell quickly they could be required to accept less than fair value to the detriment of remaining investors. A fair value adjustment was applied to the value of the fund from 24th of June as the managers were concerned property valuations did not accurately reflect the impact Brexit would have on property prices. The fair value adjustment was removed with effect from 3rd October 2016.
Since July, the managers have completed, exchanged or agreed to sell 23 properties. Cash is now at a level the managers feel is sufficient to meet normal redemption requests and they will aim to keep it at around 20% of the fund for the foreseeable future. While the managers hope to keep the fund open, any significant increase in requests from investors to sell their holding could cause the fund to re-close.
Instructions to buy or sell units in the fund can be placed online or via the phone. If you wish to place a deal online in time for the first valuation point your instruction needs to be received between 8am on 13th October and 8am Friday 14th October. Any regular savings contributions accumulated since the fund closed will not automatically be invested. To invest any accumulated regular savings contributions or to restart regular savings into this fund, please log into your account and place an instruction online.
Want our latest research sent direct to your inbox?
Our expert research team provide regular updates on a wide range of funds.