The Legal & General Group is one of the UK’s leading financial services groups. The total value of assets across the group was £709 billion, including derivatives and advisory assets.
Many of you know it isn't sensible to put all your money into one company or one type of investment. You can miss out on good opportunities where other companies or investments perform better. And if something goes wrong, all your money is at risk. So, alongside a savings account, bonds and stocks and shares, you might want to think about property.
If you own your own home you get the chance to benefit from rising residential property prices. So, to diversify further, you could think about investing in commercial property.
A property fund buys commercial properties like shops, office blocks, retail parks and warehouses in different regions in the UK or across the world. It may occasionally invest in residential property and also develop properties.
When you invest in a property OEIC or ISA your money buys shares or units in the fund. It is pooled together with other investors and a fund manager uses the money to invest in property or property securities. The fund then earns rent from tenants. The properties may also gain in value over time. The fund can re-invest the rental income in further properties for growth. An experienced fund manager will look for the best investment opportunities, aiming to buy commercial property for the right price, at the right time and in the right place.
They can provide investors with both long-term growth and income if needed. They give you the advantage of investing in property without having to deal with the day-to-day issues a landlord would have. Therefore, they can help diversify your investments so not all your eggs are in one basket. They can give you access to sectors that you might otherwise not be able to invest in.
Before 24 May 2014 the UK Property Fund was known as the UK Property Trust, structured as a unit trust. In this state it won the Money Observer awards mentioned above.
The table shows the performance for 12-month periods over the last five years, to the end of the last quarter.
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Performance data source: Lipper. It takes into account the on-going charge figure (OCF) and assumes net income is reinvested.
Past performance is not a guide to future performance.
There is no minimum investment period, but you should consider your investment to be medium to long-term, ideally five years or more.
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When it comes to planning your portfolio, there are a few basic things to think about before you start.