Changes to Legal & General Investment Management’s approach to property investment have been given the green light by shareholders.
Voting on an extraordinary resolution, shareholders backed plans to transition its UK property fund to a hybrid property strategy.
This involves combining direct UK real estate investment with indirect exposure through holdings in real estate investment trusts.
The new approach is expected to come into effect on April 12.
James Crossley, head of UK wholesale at LGIM said: “The hybrid property approach is a blended strategy and market-leading solution; balancing the wants, needs and infrastructure capabilities of the advised retail investor market, together with the regulatory backdrop.
“We wholeheartedly believe this solution is in the best interest of investors, and as a sector leader for over 18 years, we are well positioned to continue enabling investors’ access to balanced property exposure.”
The fund names will be changed to L&G Property Fund and L&G Property Feeder Fund.
They are expected to have allocation of 45 per cent UK direct exposure, 15 per cent to global Reits and 10 per cent cash.
Fund management fees are also due to be reduced from 0.75 per cent to 0.55 per cent for the I class shares.
LGIM fund manager, Matt Jarvis, said: “We’ve listened to our clients, and look forward to progressing this exciting new solution for existing and prospective investors.
“Having raised liquidity, the cash level in the fund is currently in a strong position, allowing us to confidently and formally begin the transition process.”
Jarvis said the transition will be accelerated by further new investment and a reduction of fees.
He added: “We continue to view the property sector as an attractive diversifier in any balanced portfolio, and believe it is well positioned for investors with long-term horizons.”
tara.o’connor@ft.com
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