Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Henderson begins Paif conversion of £2.1 billion Property fund

Henderson begins Paif conversion of £2.1 billion Property fund

Henderson Global Investors has been gained unitholder approval to convert its UK Property unit trust into an Oeic.

This group said this will pave the way for it to become a tax-friendly property authorised investment fund (Paif).

The motion was passed with 99.7% approval, meaning the £2.1 billion unit trust will merge into a specially created open-ended investment company structure at the end of August. It will be renamed the Henderson UK Property OEIC.

A Paif can be more tax efficient for certain groups, such as charities, UK pension funds, and investors using Sipps and Isas, but can only take the form of an Oeic. Henderson will pay all of the administrative costs of the conversion.

The group joins fellow asset managers Ignis, Standard Life Investments, Kames Capital and Legal & General which have all moved to a Paif structure in recent years.

The conversion also means the property fund will give quarterly instead of bi-annual payouts.

‘We believe a move to more frequent income payments will be beneficial to those investors who rely on income from the fund,’ said Martyn Bailey, head of client services at Henderson.

The Henderson UK Property fund is co-managed by Marcus Langlands Pearse and Ainslie McLennan (pictured).

It has returned 10.6% in the year to the end of July, ranking it 21st out of 29 funds in the Citywire UK Physical property sector. In three years it has returned 21.9%, making it fourth best performer out of 22 funds in the Citywire sector.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Marcus Langlands Pearse
Marcus Langlands Pearse
8/16 in Property - UK Physical (Performance over 3 years) Average Total Return: 29.70%
Ainslie McLennan
Ainslie McLennan
9/16 in Property - UK Physical (Performance over 3 years) Average Total Return: 29.70%
Citywire TV
Play Biotech Growth: we will ride out this storm

Biotech Growth: we will ride out this storm

Geoffrey Hsu of Biotech Growth Trust says the sell-off in biotechnology stocks represents a buying opportunity for long-term investors.

Play Sector Spotlight: Kleinwort Benson's Choukeir on UK equities

Sector Spotlight: Kleinwort Benson's Choukeir on UK equities

In our first Sector Spotlight of the year we explore UK equities on the back of the extreme market turbulence in 2016.

Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Your Business: Cover Star Club

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

In a buyers’ market for off-the-peg discretionary management, self-funded start-ups begin at an inherent disadvantage

Wealth Manager on Twitter