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Legal & General Launches Hybrid Property Fund
Nick Parmee
13 May 2011
Legal and General Property and Legal and General Investment Management have launched a Hybrid Property fund, intended to provide UK defined contribution pension schemes with a means of investing in property funds while managing volatility and liquidity. The fund invests in LGP’s Managed Property fund and LGIM’s Global REITS Index Tracker fund on a default position split of 70:30, respectively. The manager has the flexibility to alter the 70:30 default position of the fund within pre-set benchmark ranges. The managed fund is an actively managed, daily-priced, UK property fund which has invested directly in freehold and leasehold properties since 1971. It also has a provision for up to 15 per cent to be invested in indirect property vehicles and derivatives. The Global REITS Index Tracker Fund was launched by LGIM in 2006 and aims to provide global, diversified exposure to listed real estate equity markets around the world by tracking the FTSE EPRA/NAREIT Global Real Estate index.