Many of our client’s will be invested into the Henderson UK Property OEIC as their core UK commercial property holding. The fund has enjoyed a good year, generating a return of 10.2% versus a sector average of 6.9% (source: Trustnet, 28th October 2014), and at approaching £2.4 billion in size is one of the major UK players in this space.
The fund is now looking to increase its scale with property and tenant diversification and, subject to shareholder approval, the Old Mutual Property fund will be merged into the Henderson UK Property OEIC in January 2015.
Henderson believes that this merger is good news for investors. The Old Mutual fund is similarly a bricks and mortar fund with a high concentration upon the South East of England. Henderson is confident that the dividend yield, quality of tenant and void rates will not be diluted by the merger, and that the assets being taken on will be an excellent complementary fit for the existing portfolio of properties.
A short video interview with the fund manager can be found on Henderson’s website (link). If you have any questions please do not hesitate to contact Richard Haines on 01633 653171, or Richard.firstname.lastname@example.org