Investors will receive their investment in the Janus Henderson UK Property Fund this month after the sale of its property portfolio completed.
The sale, which completed yesterday (May 31), means that Janus Henderson expects to be able to instruct the payment to return proceeds to investors on June 16, settling on June 22.
The fund house suspended the fund earlier this year after exploring various options for its future amid a backdrop of uncertainty for commercial property funds.
In March it said the “current strength” of the UK commercial property market as well as the “ongoing regulatory discussions” on the future for open-ended property funds were the reasons behind the move.
The fund’s portfolio was then sold at a price above the most recent independent valuation, the group told investors.
Waves of redemptions
Issues with property funds began after the Brexit vote in 2016, when the funds rushed to gate for redemptions amid concerns over valuations.
Then again in 2020 the pandemic left the fund managers with no choice but to suspend the funds again, after most independent valuers said the market conditions left it impossible to value the makeup of the portfolios.
In May last year Aviva Investors closed its UK property fund over concerns that it had become increasingly challenging to generate positive returns while also retaining enough liquidity to re-open the fund, which remained gated since the start of the pandemic.
The next month Aegon also closed its property fund, citing similar issues.
Regulator hold up
The FCA opened a consultation into the future of open-ended property funds, however last May it said it would not confirm specific property fund rules until a consultation on the long-term asset fund had been completed.
This was concluded in October, and the regulator has not outlined any further details to date.
A spokesperson from the FCA said they were unable to give a date when the new rules would be released.
One of the solutions touted by the regulator in the consultation was the introduction of notice periods for redemptions, either on certain days throughout the year, or a set time after a withdrawal request has been given.
However, this presents a headache for platform providers who currently do not have the functionality to adhere to notice periods for redemptions.
sally.hickey@ft.com
