Following the dealing suspension of some of the property funds, including the Henderson UK Property fund, we have replaced this fund within the Cautious, Balanced Growth and Aggressive EasySIPP portfolios.
The Henderson UK Property fund has been replaced with the Henderson UK Absolute Return fund.
The fund was launched in 2010, but the team have a 10-year track record running another identical mandate. During that period the returns have been remarkably consistent. In a nutshell, the Chelsea research team like this fund as, unlike many of its sector peers, it has achieved its stated aim, which is to provide equity-like performance, but with one third the volatility.
Balanced Growth EasySIPP
The Henderson UK Property fund has been replaced with the VT UK Infrastructure Income fund.
This is a UK infrastructure fund run by a specialist infrastructure team. With the UK government encouraging more infrastructure funding from the private sector, new opportunities for investors are emerging.
About two thirds of the fund invests in investment trusts exposed to different types of infrastructure. These include public social infrastructure (hospitals and schools), private social infrastructure (GP surgeries and student accommodation) and renewable energy infrastructure (solar power and wind turbines). The fund has a smaller exposure to direct infrastructure equities (currently 12%), which it breaks down into private economic infrastructure (water, ports, airports and power) and infrastructure contractors (builders of infrastructure projects). The fund also holds some direct infrastructure fixed income debt (currently 8%).
This is a well diversified fund, which offers an excellent way to play the growing need for infrastructure in the UK. It has a very good yield and we expect it to continue to be less volatile than the wider UK stock market.
The Henderson UK Property fund has been replaced with the Blackrock UK Absolute Alpha fund.
The fund will try and generate a positive return in all market conditions by using a combination of positions in equities, going 'long' in stocks they expect to rise and 'short' in stocks they expect to fall. It is relatively conservative in that it can go 30% long or 10% short. It is typically at a net long position, whereby they hold more things expected to rise rather than fall. Since Nigel Ridge joined in 2013 the fund mainly focuses on large and mid cap companies. They will never short a small-cap stock. The fund has a 20% performance fee on any outperformance above 3-month LIBOR, subject to a high water mark.
Do you currently invest in an EasySIPP?
Unfortunately, as Henderson have suspended trading on the fund, you will not be able to switch out or invest into the fund until dealing is allowed again. Please keep an eye on our monthly newsletters, where we will keep you up to date with any changes. You can also “like” us on Facebook.
If you have a regular contribution set up that currently pays into a suspended fund please note that going forward the money will remain in the Cash Account unless you instruct us otherwise. Don't forget you can also make lump sum investments into your pension at any time. Please contact Sarah Culver on 0207 384 7300 if you would like to make any changes to your pension.