Why invest in property?

Property can provide a number of benefits for investors, when managed carefully and considered as part of a broader portfolio. Property is a ‘hands-on’ asset class and a skilled property portfolio manager can undertake a number of active and index investment initiatives to both construct a well-balanced portfolio and enhance the value of underlying properties’ value.

About the Legal & General Property Fund

Designed to meet investor preferences for daily dealing, the Legal & General Property Fund provides easy access to an actively-managed direct UK property portfolio and globally diversified REITs (real estate investment trusts). The fund aims to provide:

  • Daily-dealing access to a diversified universe of properties and property-related assets
  • Longstanding direct UK property investments, managed by the same team since 2006
  • Diversified exposure to global REITs, managed by index experts

Download the Product Profile to learn more about Legal & General Property Fund

About REITs

REITs are companies that own or finance income-generating real estate, and are a longstanding investment vehicle structure for investing in property. They can:

  • Provide a wide variety of exposures across regions and property sectors
  • Offer daily liquidity through stock exchange trading
  • Mirror performance of underlying property assets
  • Complement direct real estate holdings

REIT exposure in the Legal & General Property Fund is via an LGIM-designed index, which screens for sustainability metrics*. The index uses an LGIM Green Real Estate Score to tilt index holdings, aggregating three individual sustainability metrics specific to real estate.

*Please note that the Global Green REIT Index Strategy has been provided as an illustrative indication of the fund’s REIT exposure for the transition towards the Hybrid strategy, communicated to investors in Q1 2024. This may evolve over time. The value and/or market price of REITs may go down as well as up and may not reflect the value of the underlying assets or net asset value. Please refer to the fund’s Product Profile for more information on these metrics and index methodology.

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** AUM data correct as at 30 June 2023, latest data available as at time of publication.

Key risks

The value of any investment and any income taken from it is not guaranteed and can go down as well as up, and investors may get back less than the amount originally invested. The risks associated with each fund or investment strategy should be read and understood before making any investment decisions. Further information on the risks of investing is available from LGIM’s Fund Centres.

While LGIM has integrated Environmental, Social, and Governance (ESG) considerations into its investment decision-making and stewardship practices, this does not guarantee the achievement of responsible investing goals within funds that do not include specific ESG goals within their objectives.

It should be noted that diversification is no guarantee against a loss in a declining market. Tax treatment is dependent on individual circumstances and is subject to change.