Henderson's UK Property Fund offers consistent outperformance (UK)
Wednesday 8 August 2012
Henderson Global Investors has reported excellent performance for itís UK Property Fund (HUKPF). The fund has outperformed the benchmark across one, three, five and 10 year periods as well as outperforming the benchmark since inception. It has delivered returns of 6.4% over a one year period and 12.6% over a three year period. This compares to benchmark returns of 3.8% and 10.3% respectively.
HUKPF offers investors immediate access to the UK property market through a diversified strategically weighted and income producing portfolio. The open ended Fund invests in all forms of commercially rented investment property throughout the UK. The investment style is geared towards acquiring assets with active enhancement opportunities with potential to deliver outperformance irrespective of market fluctuations.
Cameron Fraser, Fund Manager and Director of Property at Henderson said: "The Fundís outperformance is a direct result of our value-add strategy and our philosophy of bringing forward creative and innovative asset management initiatives across the portfolio. The boutique nature of the Fund allows a very hands-on approach for each and every asset. Big is not always better when it comes to driving performance across a balanced portfolio.
"At a micro level, we continue to remain focused on protecting the Fundís security of income and targeting higher income direct investments. We are committed to delivering our value add projects such as Oxford, Bishopís Stortford and Winchester - all projects which have the real ability to significantly enhance returns further throughout the remainder of 2012 and beyond."
Income is well secured against a diversified portfolio of 29 properties (including indirect property). In the direct portfolio alone there are over 290 tenancy agreements underpinned by more than 240 companies. As at June 2012, the direct portfolio had a true equivalent yield of 7.8% compared to the 7.4% for the IPD All Property Index.
At June 2012, the Fund has a 0.3% loan to value ratio at the direct property level (with 9% LTV on a 'see-through' basis through its two indirect holdings). Managing gearing levels protects the Fund from volatility in the credit markets and exaggeration of capital value movements.