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Janus Henderson UK Property
Providing core exposure to the UK commercial property market, Janus Henderson UK Property fund invests in commercial physical property, but with a significant allocation to cash for liquidity purposes (to make it easier to manage inflows and outflows of investor money). The fund managers' primary concern is to provide an attractive and stable income, which sets it apart from some of its peers.
Our opinion
Put into practice, the managers' strategy of finding high quality tenants and securing long leases has resulted in the fund having one of the highest occupancy rates in the sector. This fund may be appropriate for investors wanting core UK property exposure, with a sustainable yield.
Company description
Janus Henderson is the product of a merger between Henderson Group and Janus Capital Group. Trading on the New York and Australian stock exchanges, the group was formed in May 2017 to form a greater collective and benefit from expanded product ranges and a larger pool of talent employed.
Fund manager
The Janus Henderson UK Property fund has been jointly managed by Ainslie McLennan and Marcus Langlands Pearse since mid 2009. Marcus has been in the industry since 1991 and Ainslie joined Henderson in 2002. Both have extensive experience running commercial property funds that invest directly and indirectly in the UK and European markets.
With volatility likely to remain in other asset classes, commercial property remains attractive for income and diversification purposes.
Ainslie McLennanFund manager
Investment process
With the emphasis on providing a stable yield, the managers focus on finding high quality tenants and securing long leases. These tend to be firms with stable or growing businesses, where the medium to long-term prospects for the industry are good. In recent years the managers have worked hard to diversify the fund further and have made new investments in supermarkets, hotels and leisure centres. There is a weekly investment meeting, which is an essential part of the investment process. All investment introductions are discussed to provide an opportunity for all portfolio managers to declare possible interest in any particular property. Potential sales are also discussed.
Risk
Janus Henderson UK Property fund is well diversified across different regions and sectors, and a significant portion of the fund’s leases are linked to inflation, which will offer some protection from inflationary risk. As the fund does invest in physical property, which can be hard to sell quickly, the performance of the fund may suffer if there are large redemptions. However, the fund does hold a large cash buffer to guard against this.
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