L&G UK Property reduces spread due to 'low likelihood' of property purchases

‘Continued net redemptions’

L&G UK Property and its feeder fund have reduced the spread owing to the “low likelihood” the funds will make any acquisition of property in the near term, due to “a state of continued net redemptions”.

Writing to shareholders on 25 March, Lee Toms, director, Legal & General Unit Trust Managers, said the "round trip" spread would reduce to 1.11% from 6.34% from 1 April 2022. Janus Henderson fund closure an 'ill omen' for wounded open-ended property sector He acknowledged that while the total size of the fund had grown because of strong performance, a separate review of the property funds' flow pattern found that continued redemptions left it unlikely the manager could make any direct property purchases. As such, they found it was "in the best interest of subscribing investors to r...