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The fund aims to achieve a high income together with some growth of both income and capital through investment primarily in commercial property and property-related assets. Approximately three-quarters of its assets are in bricks and mortar property, with the balance in cash and UK listed property company shares. The focus is mainly on prime bricks and mortar properties, located principally in the South East of England. Investors should note that the management group reserves the right to swing the unit price without notice to reflect net fund flows.
|Sector||UK Direct Property|
|Dividends paid||31 Jan, 30 Apr, 31 Jul, 31 Oct|
|Standard initial charge||0.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.24%|
|Annual management charge||0.75%|
|Ongoing charges figure||0.81%|
Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.
Around 60% of the portfolio is invested in the South East. It also has an above average allocation to higher quality tenants. It has c.20% in cash which gives it flexibility to invest quickly and to meet redemption requests, but could also be a drag on performance and dividends. This fund merged with the Old Mutual Property fund in early 2015; adding an additional 24 properties which offer asset management opportunities. The large size of the fund may limit its ability to buy smaller properties in the UK regions where there is more scope for capital value growth.
|High yield bonds||0|
The fund manager's strategy is to focus predominantly on prime (as opposed to secondary) bricks and mortar property assets. The portfolio managers apply research over the long and the short term, to identify those property sectors where outperformance is expected and where they feel they can best add value. Once purchased, properties are actively managed by a dedicated team of experienced investment professionals. Opportunities to add value include legal and physical improvements e.g. improving lease structures, diversifying tenant mix, refurbishments and amending planning consents. The team uses a four stage approach; Strategy, Target, Analyse and Return (“Star”). Strategy: identify an attractive overall opportunity; find the best way to access that opportunity; estimate its risk/return profile. Target: top-down macro analysis to select target markets. Analyse: build a live portfolio. Return: ongoing monitoring of investments. The investment process is agnostic of market conditions and is intended to be stable and robust through rising and falling value cycles, to which the UK property market is prone.
|Fund data updated on||22/10/18|
|High yield bonds||0|
As at: 31/08/2018
4.5506%Rd Park, Hoddesdon
2.9909%169 Union Street, Se1, Southwark
2.9266%Capital Park, Cambridge
2.5004%Dalton Park, Murton, Durham
2.338%Robin Shopping Park, Wigan
2.211%Tower Retail Park, Crayford
2.1203%K & N, Derby Commercial Park, Derby
2.1203%Data Centre, 3 King George Close, Romford
1.7477%Greenwich View, Docklands
1.6405%Luton, Bilton Way (Entity), Luton
|Retail - Property||28%|
|Industrial - Property||20%|
|Offices - Property||15%|
|Other - Property||15%|
Portfolio as at 31/12/17: Fund size £3bn, average lease length 10.9yrs; number of properties 133; void 2.5%; offices 27.3%; retail 27.5%; industrial 17.1%.
Asset Allocation: up to 20% property shares; 15-25% cash; 5% fixed interest; balance in bricks and mortar property.
The portfolio usually has very little commonality with the Index and so performance can be expected to differ markedly on occasions.
|Average monthly relative returns||Bestinvest MRI|
|13/14||14/15||15/16||16/17||17/18||3 years||5 years||Career||3 years||5 years||Career|
|Performance figures are based on the average of monthly percentage returns relative to the benchmark index.|
•Langlands Pearse has been working in commercial property since 1991. He worked at HypoVereinsbank on their property investment and property finance teams for 8 years. He then moved into private equity with a property focus for 4 years. He joined New Star in September 2003 and graduated from Assistant Fund Manager to Director of UK Property. He joined Henderson on the acquisition of New Star and is now the Lead Fund Manager on the Henderson UK Property fund and a Director of UK Property. •McLennan began her career in 1996 working in the Investment Department at Ryden Property Consultants in Edinburgh qualifying as a Chartered Surveyor in 1998. In 2001 she joined PJ Leggate & Co where she was involved with acquiring and managing a portfolio of commercial property. In 2002 McLennan joined Henderson Global Investors running both UK commercial and residential property portfolios.
Marcus Langlands Pearse / Ainslie Mclennan has 9.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.32%. During the worst period of relative performance (from November 2009 - May 2018) there was a decline of 34% relative to the index. The worst absolute loss has been 10%.
|Periods of worst performance|
|Absolute||-10% (April 2016 - July 2016)|
|Relative||-34% (November 2009 - May 2018)|
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.