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.

Figures as of 31 December 2014

 

Why invest in property funds?

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.

What are property funds?

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.

How do they work?

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.

Who are property funds suitable for?

  • Investors looking for long-term growth and to diversify their portfolio
  • Investors looking for an income.
  • Investors looking for a stocks and shares ISA rather than a cash ISA.
  • Investors looking to add another dimension to their overall investment portfolio because the property market won't necessarily peak or dip at the same time as share prices.

What are the advantages of property funds?

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.

Any downsides?

  • The value of properties held in the fund can fall and that means the value of your investment can fall as well.
  • The costs associated with buying a property like stamp duty, surveys and legal fees still need to be paid by the fund. These can also affect the value of the fund.
  • Rental growth is not guaranteed and unpaid rent could affect the performance of your investment.
  • Property can be difficult to buy or sell. This could mean:
    • cash builds up waiting to be invested, so the fund will underperform when property returns are greater than the interest earned on cash
    • property may have to be sold for less than expected
    • in exceptional circumstances, the fund may delay dealing with withdrawal requests in the best interests of all the investors.
  • The value of property is generally a matter of valuer’s opinion rather than fact.

Why consider the Legal & General UK Property Fund?

  • The Legal & General UK Property Fund has won 
    • Property Fund of the Year at the 2014 International Fund Awards UK
  • The Money Observer awards for 
    • Best Large Property Fund 2013.
    • Best Property Fund 2012.
    • Highly Commended Best Value for Money for 2012 and 2013.

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.

Jun 10 to Jun 11Jun 11 to Jun 12Jun 12 to Jun 13Jun 13 to Jun 14Jun 14 to Jun 15
 8.0% 0.2% 2.4% 10.5% 11.6%

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. 

  • Initial charges discounted to 0% when you invest direct. Other charges apply.
  • Free to switch between funds with My Account

What's the minimum investment?

What's the minimum investment period?

There is no minimum investment period, but you should consider your investment to be medium to long-term, ideally five years or more.

Important information

  • Please remember the value of an investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.
  • The tax efficiency of ISAs is based on current rules. The current tax situation may not be maintained. The benefit of the tax treatment depends on individual circumstances.
  • The value of property is generally a matter of valuer’s opinion rather than fact.
  • Each trust has its own individual risks detailed in the individual 'Key Investor Information' documents. More general information can be found in ' A guide to investing with us (PDF:812KB) '. Before you decide to invest you must read these documents.

Our actively managed
UK Property fund

Voted by you

Best Investment NISA 2015  

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