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Henderson suspends dealing on £3.9bn property fund


Henderson Global Investors has suspended dealing in its £3.9bn property fund, following three other major providers.

The asset manager has suspended dealing on the Henderson UK Property PAIF and the feeder fund “to safeguard the interests of all investors”.

A statement from the manager says: “Despite a strong underlying portfolio, the decision was taken due to exceptional liquidity pressures on the funds, as a result of uncertainty following the EU Referendum and the recent suspension of other direct property funds.”

At the end of May the fund had 14.3 per cent in cash, but fears about valuations on UK property have led to liquidity running out on a number of funds.

The asset manager adds that the Henderson Horizon range of property securities funds are not affected.

Previously Henderson said it had not plans to suspend trading, but would “continue to monitor the conditions of the sector”.

It takes the total assets in suspended property funds to £12.9bn, following the closure of funds at Standard Life Investments, M&G and Aviva Investors.

M&G Investments temporarily suspended trading in the £4.4bn M&G Property Portfolio and its feeder fund, while SLI stopped trading on its £2.7bn UK Real Estate fund in response to redemption requests, and Aviva Investors suspending trading on its £1.9bn Property Trust.

Tilney Bestinvest managing director Jason Hollands warns that as other property funds end up reaching between 10 and 15 per cent liquidity they might halt trading too.

The Standard Life fund had a cash position of just over 13 per cent, while Aviva’s fund had 9.3 per cent in cash at the end of May. M&G’s fund had 6.7 per cent in cash at the end of June.


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