Update: LGIM proposes open-ended property fund restructure to hybrid model

45% direct property weighting

Legal and General Investment Management has proposed changes to its L&G UK Property fund (PAIF), shifting the vehicle from a direct property focus to a hybrid strategy offering exposure to real estate investment trusts.

If the changes are approved, L&G PAIF will reduce its current 80% exposure to direct property investment to around 45%, ringfencing the fund from the ongoing Financial Conduct Authority consultation on direct property funds, which is targeting strategies with greater than 50% direct property exposure. The fund will also reduce its current 20% cash balance, instigated following the widespread 2020 suspensions to offer better liquidity to investors, to 10% with the remaining 45% of the fund invested in REIT shares. Hugh MacTruong, senior distribution strategy manager at LGIM, told Inves...