Redemption charge for Henderson property investors
Joe McGrath, 18 January 2010
Investors whose holding in the Henderson International Property fund is more than £7.5 million will now have to give one month’s notice to sell their shares or face a 10 per cent redemption charge.
The news comes as Henderson confirmed it was reopening its International Property Fund for dealing from 12 February 2010.
However, the Financial Services Authority (FSA) approved the introduction of a restricted redemption share class for investors whose holding is worth more than £7.5 million.
If they are unable (or unwilling) to give one month’s notice to sell their shares, they will now have to pay a ten per cent charge of the value of the redemption.
Simon Hillenbrand, director of UK retail at Henderson, said that these stricter redemption procedures for large investors should will the fund manager greater control over liquidity.
He added, ‘I also believe the changes that we have made to the management of the fund’s liquidity and the additional resource and expertise that Henderson is able to apply to the fund will serve investors well in the future.
'I am encouraged by the future prospects for the fund given early signs of recovery in some international commercial property markets and improving investor sentiment towards this asset class.'
The news comes two months after the fund was suspending following heavy redemptions as the credit crisis led to a severe loss in investor confidence.
Today, Henderson confirmed that its asset disposal programme was successful and the fund could now reopen and be able to maintain a ‘diverse and well-balanced’ portfolio of assets.
Fund manager and director of retail property funds at Henderson, said that the company had reached the stage where it is confident in meeting redemptions.
He said, ‘I thank investors for their patience. The past eighteen months has been a difficult period for commercial property internationally, however, the sharp correction in prices across markets does, I believe, now offer compelling value for long-term investors.'
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