Henderson UK Absolute Return reopens as assets fall away from $2bn capacity

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Henderson is reopening Ben Wallace and Luke Newman’s UK Absolute Return strategy following the decision to soft-close its funds 20 months ago.

The asset manager soft-closed the strategy, which includes the Henderson UK Absolute Return Oeic and the Henderson Gartmore UK Absolute Return Sicav, on 30 November 2011 by imposing a 5 per cent initial charge after it started to approach its $2bn capacity.

However, the asset manager has now removed the increased charge to reopen the strategy. The Oeic’s assets under management have fallen to £164m, down from the £368m it held when the soft-closure was announced, while the offshore fund has shrank from £326m to £174m.

The strategy’s total AUM was about $1.8bn when Henderson implemented the soft-closure but currently stands at around $870m.

Newman says: “The past two years have continued to be turbulent for markets, but the fund has not lost money for investors. It has just delivered its 12th consecutive month of positive absolute performance.

“Given the fund’s track record, success in preserving capital in difficult environments and generating uncorrelated returns in a variety of equity market conditions, we now feel it’s appropriate to reopen it.”

Wallace adds that the demand for absolute return products is continuing to grow.

He says: “Market conditions have improved, as individual stock dispersion increased. This has allowed us to successfully put more of our investors’ capital to work in both the core and tactical books within the strategy.”