Fund Rationale: Janus Henderson Horizon Asia-Pacific Property Income Fund

Janus Henderson Horizon Asia-Pacific Property Income Fund (the “Fund”)
SGD Class A5m Distribution Shares (ISIN: LU2226123490)
Fund Manager Page
Daily Price & Charts

Endowus has selected the Fund as it offers:

  • Clear income objective which is delivered by a structured and valuation-led investment process;
  • Focus on capturing structural growth and future opportunities by tapping  into non-traditional and new markets in the real estate sector in Asia;
  • Good track record compared to peers and benchmark; and
  • Retail share class with 100% trailer fee rebated back to Endowus investors to achieve lower cost of access.

-----------------------------------

Key Information

Fund Objective:The Fund aims to provide a sustainable level of income, with a dividend yield higher than that of the benchmark (FTSE EPRA Nareit Developed Asia Dividend Plus Index), plus the potential for capital growth over the long term.

Suitability: Investors who seek sustainable level of income and potential for capital growth over the long term, and are comfortable with the volatility and risks of an Asian property fund and that the principal may be at risk.

Cost: 
Janus_Henderson_Horizon_Asia-Pacific_Property_Equities_Fund_Cost_Retail_100__Rebate.png

  1. Total Fund-level Fees include fund management fee of 1.20%.
  2. This is a retail share class with 100% trailer fee rebated back to Endowus investors to lower the cost of access.
  3. Endowus do not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.
  4. The Hurdle Rate is the benchmark performance from the start of the performance period. The current daily NAV must outperform both the High Water Mark (the NAV at the start of the performance period) and the benchmark performance for the same period in order to accrue a performance fee.

Fund Characteristics

Fund Inception: 3 October 2005
Share Class Inception: 1 October 2020
Benchmark: FTSE EPRA Nareit Developed Asia Dividend Plus Index

Fund AUM: SGD 53.4m
Source: MorningStar as of  24 June 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:

JH_Apac_property_Region.png

Sector Allocation:

JH_Apac_property_Sector.png

Source: MorningStar as of 31 May 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown. 

Selection Criteria

Endowus has selected the Janus Henderson Horizon Asia-Pacific Property Income Fund as it has a clear income objective which is delivered by a structured and valuation-led investment process. The real estate market includes both Real Estate Investment Trusts ("REITs") and property developers. Traditionally, investors would think that an income-generating portfolio would focus purely on REITs. However, there are property developers that pay high dividends as well. It is also important to be aware that the REITs market is not very mature outside Australia, Japan, Singapore and Hong Kong. Hence, it is important to have real estate exposure via developers instead.

The team covers an expanded investment universe of more than 200 stocks that include both REITs and property developers, and runs the universe through their proprietary valuation framework and quality scoreboard to generate the expected total return for each individual security. The top-ranking stocks are then prioritised for dividend yield and goes through intense analysis before being constructed into a high-conviction portfolio with 20-40 names. The portfolio has a split of ⅔ in REITS and ⅓ in developers. 

The Fund is managed by Tim Gibson and Xin Yan, who have on average 17 years of investment experience. They apply a forward-thinking mindset to the portfolio by keeping abreast of the structural growth opportunities in the Asia Real Estate market and tapping into the newer REITs market such as China and Philippines. The team has delivered a good track record compared to peers and benchmark. 

The distribution target for A5M share class is 7%: about 4.5% would come from dividend yield and 2.5% would be supplemented by capital appreciation. Investors should note that capital appreciation after taking the distribution would then be very low, and investing solely in the APAC property market involves taking on concentrated regional and sectoral risk. Therefore when selecting the Fund, you should consider how much income versus capital appreciation you wish to generate, as well as to diversify your portfolio with allocations to other sectors and geography. 

-----------------------------------
Updated by Endowus: June 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.