LGIM to lift suspension on UK property fund
Reopens 13 October
Legal and General Investment Management (LGIM) has announced it intends to reopen its UK property funds as of noon on 13 October 2020.
In an update on its website, the board of the funds' authorised fund manager, Legal & General Unit Trust Managers (LGUTM), has stated it is "now confident" that the three criteria it initially set out for the fund to reopen have been met.
Firstly, material uncertainty clauses apply to less than 20% of the assets in the portfolios and the risk of going over 20% following reopening is limited.
Secondly, the LGUTM board is satisfied that valuations from the funds' independent valuer, Knight Frank, remain accurate and reflective of the market for transactions.
Finally, the funds' liquidity position remains well-placed to meet investor intentions and still has sufficient liquidity after redemptions are met.
Providing "no new material issues come to light and it remains in the best interests of investors", the funds will open on 13 October, which the firm stated is "as soon as practicable" to allow for communication with its client base and ensure "sufficient notification periods are enabled".
As of 31 July, the £2.8bn fund held 24.4% of its total assets under management in cash, 69.2% in direct property asset value, 3.6% in reserved cash (developments) and 2.9% in real estate investment trusts.
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