Fact sheet: Legal & General UK Property

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
PROPERTY
Sector
UT Property
Fund type
OEIC
Primary aim
INCOME
Why Money Observer Rates Legal & General UK Property

Rated Fund 2013-2014, 2016-2017. Benefiting from industrial holdings outside the capital

This fund won Money Observer's award for the Best Property Fund investing in direct property in three out of the four years between 2012 and 2015. Its managers are Michael Barrie since 2006 and Matt Jarvis since 2010.

It was one of only a few funds to remain open for dealing in the wake of the EU referendum vote, which the managers attributed to careful preparation of the portfolio and prudent liquidity management. It has retained a healthy amount of liquidity since then, as the managers expect uncertainty in the property market to continue during the Brexit negotiations.

Otherwise the managers are continuing to run the fund to benefit investors seeking returns over the medium to long term. They believe their portfolio continues to be well-positioned in terms of liquidity, diversity of tenants and sectors, and the strength of income it receives.

They had already been reducing its exposure to London in the year before the Brexit vote. Around two thirds of the fund is now invested outside London and the South East.

The fund also has an overweight exposure to industrial property, which the managers believe is relatively insulated from the impact of the referendum.

They say performance from this sector has been strong recently due to a combination of structural changes such as internet retailing, combined with a general lack of supply of space. They point out that demand from occupiers within the sector is also very diverse. At the end of 2016, the fund had over 80 holdings across the UK.

3 Year Performance
Fund Performance20.5%
Average of Rated Funds Group22.2%
Sector Performance12.2%
Fund information
Fund name
L&G UK Property I Acc
Fund manager company
Legal & General UT Mgr Ltd
Fund type
OEIC
Fund managers
  • Michael Barriesince 28/02/2006
  • Matt Jarvissince 01/01/2010
Accolades
Winner - Physical Property
Fund objective
The fund will be a Property Authorised Investment Fund for tax purposes at all times. Its objective is to provide a combination of income and growth through investing generally in commercial property. The fund will typically invest at least 80% in a range of UK commercial properties (but this can be as low as 60% where the fund manager deems it to be in the interests of the fund and its shareholders). The fund may invest in all types of commercial property. It may occasionally invest in residential property and may also develop properties. The fund may also invest from time to time in commercial properties in the Isle of Man and the Channel Islands. The fund may use derivatives (contracts which have a value linked to the price of another asset) for the following purposes: • To help with efficient day to day management. • To reduce some of the risks of the market. The fund may also invest in other property-related assets (including property-related UK shares and UK property-related authorised investment funds), money market instruments, deposits, money market-related authorised investment funds and government bonds. Money market instruments are a type of security where cash can be deposited for short periods of time. If you hold accumulation shares, income from investments held by the fund (a mixture of rental income, interest and dividends) will be reinvested into the value of your shares. If you hold distribution shares, income from investments held by the fund will be paid out to you (as a mixture of rental income, interest and dividends). In addition to the charges set out in the charges section overleaf, the fund will incur transaction costs relating to the buying and selling of property. These costs are paid from the assets of the fund. This fund may not be appropriate for investors who plan to withdraw their money within five years. The fund may be appropriate if you would like to add a more specialist investment to an existing portfolio.
Benchmark
  • IA - Property
Investment style
None
Investment method
Physical
Quick stats
1 Year return
8%
1 Year rank in sector
12/49
Sector
UT Property
Yield
2.7%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.75%
Fund size
£3,071m (£2,567m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
43
Top in this sector
Fund name1 Year
Scot Wid HIFML UK Property12%
Mayfair Capital Prp I Tfr Chrts11.9%
Aberdeen European Prop Share10.7%
Schroder UK Real Estate10.7%
Aberdeen Property Share10.4%
...more in UT Property

Performance snapshot

Holdings snapshot

  • Money Market22.9%
    Midlands14.8%
    South East UK13.2%
    Central London8.8%
    Others8.2%
  • Industrials23.2%
    Cash & Cash Equivalents22.9%
    Offices - Property22.9%
    Retail - Property19.1%
    Others7.3%
  • Physical Property70%
    Cash & Cash Equivalents22.9%
    Property Shares6.6%
    Alternative Investment Strategies0.5%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-2.6%4%8%20.5%49.5%
Sector-1.8%-1.1%-0.1%2.4%12.2%30.3%
Rank within sector22 / 498 / 5113 / 5112 / 4911 / 4710 / 40
Quartile2nd1st2nd1st1st1st
Calendar performance
 YTD - 20182017201620152014
Fund-0.1%8.8%1.9%10.5%13.6%
Sector-2.3%5.9%5%5.4%10.7%
Rank within sector28 / 4916 / 4928 / 4812 / 4726 / 44
Quartile3rd2nd3rd2nd3rd
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
7
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
-0.07
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.87
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
3.56
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
6.6
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.25
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.01
Price movement
52 week high82.81
52 week low76.45
Current bid price82.57
Current offer price87.25
Current mid price-
Region
1Money Market22.9%
2Midlands14.8%
3South East UK13.18%
4Central London8.79%
5Others8.18%
6South West UK6.4%
7London5.86%
8Scotland5.78%
9Yorkshire & Humberside5.71%
Industry sector
1Industrials23.21%
2Cash & Cash Equivalents22.9%
3Offices - Property22.9%
4Retail - Property19.12%
5Others7.32%
6Leisure4.55%
Asset type
1Physical Property70%
2Cash & Cash Equivalents22.9%
3Property Shares6.6%
4Alternative Investment Strategies0.5%
Individual holdings
No data available.
Management
Fund manager group
Legal & General UT Mgr
Fund manager company
Legal & General UT Mgr Ltd
Fund type
OEIC
Fund objective
The fund will be a Property Authorised Investment Fund for tax purposes at all times. Its objective is to provide a combination of income and growth through investing generally in commercial property. The fund will typically invest at least 80% in a range of UK commercial properties (but this can be as low as 60% where the fund manager deems it to be in the interests of the fund and its shareholders). The fund may invest in all types of commercial property. It may occasionally invest in residential property and may also develop properties. The fund may also invest from time to time in commercial properties in the Isle of Man and the Channel Islands. The fund may use derivatives (contracts which have a value linked to the price of another asset) for the following purposes: • To help with efficient day to day management. • To reduce some of the risks of the market. The fund may also invest in other property-related assets (including property-related UK shares and UK property-related authorised investment funds), money market instruments, deposits, money market-related authorised investment funds and government bonds. Money market instruments are a type of security where cash can be deposited for short periods of time. If you hold accumulation shares, income from investments held by the fund (a mixture of rental income, interest and dividends) will be reinvested into the value of your shares. If you hold distribution shares, income from investments held by the fund will be paid out to you (as a mixture of rental income, interest and dividends). In addition to the charges set out in the charges section overleaf, the fund will incur transaction costs relating to the buying and selling of property. These costs are paid from the assets of the fund. This fund may not be appropriate for investors who plan to withdraw their money within five years. The fund may be appropriate if you would like to add a more specialist investment to an existing portfolio.
Benchmark
  • IA - Property
Investment style
None
Investment method
Physical
Fund managers
NameSinceBiography
Michael Barrie28/02/2006Michael Barrie is a Director of LGP with specific responsibility for the Balanced Property Funds Portfolio (c.£3.4bn as at March 2010), including the L&G LPI Income Property Fund and the L&G Managed Property Fund. Michael joined LGP in 2005 having previously been a director of F&C Property Asset Management and lead fund manager for the RSA Life Unitised Fund & RSA Pension Unitised Fund. Over the last three calendar years of Michael’s management of these funds they outperformed the IPD benchmark by 2.0% and 1.1% per annum respectively. The Life Unitised Fund received the IPF/IPD/EG award for best 3-year rolling performance (Funds between £50m and £200m) in 2002. He also established and managed the ISIS Property Trust and the ISIS Property Trust 2 which were listed on the London Stock Exchange. Michael holds a degree in Land Economics, a post graduate diploma in Property Investment and is a Member of the Royal Institution of Chartered Surveyors (MRICS) and the Association of British Insurers Property Group.
Matt Jarvis01/01/2010Matt Jarvis joined Legal & General Property as an asset manager in November 2004 and is Co-Fund Manager of the UK Property Trust, having previously been a Commercial Valuer with Jones Lang LaSalle. Matt holds a degree in Land Management from Reading University and is a Member of the Royal Institution of Chartered Surveyors (MRICS).
Compliance
IA Recognised, Non UCITS Retail Scheme, Property Authorised Investment Funds
Domicile
No data available.
Fund for sale in
United Kingdom
L&G UK Property C Acc
Initial charge-
Annual charge-
Min single investment£100,000,000
Min regular saving£20,000
Available in ISANo
Ongoing charge (OCF)0.63%
Total expense ratio (TER)-
Bid price86.01
Offer price90.88
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeKAGT
L&G UK Property C Inc
Initial charge-
Annual charge-
Min single investment£100,000,000
Min regular saving£20,000
Available in ISANo
Ongoing charge (OCF)0.63%
Total expense ratio (TER)-
Bid price57.12
Offer price60.35
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeKAGU
L&G UK Property F Acc
Initial charge-
Annual charge-
Min single investment£500
Min regular saving£100
Available in ISAYes
Ongoing charge (OCF)1%
Total expense ratio (TER)-
Bid price77.9
Offer price82.31
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeG5YG
L&G UK Property F Inc
Initial charge-
Annual charge-
Min single investment£500
Min regular saving£100
Available in ISAYes
Ongoing charge (OCF)1%
Total expense ratio (TER)-
Bid price54.48
Offer price57.56
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeG5YH
L&G UK Property I Acc
Initial charge-
Annual charge-
Min single investment£1,000,000
Min regular saving£20,000
Available in ISANo
Ongoing charge (OCF)0.75%
Total expense ratio (TER)-
Bid price82.57
Offer price87.25
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeL077
L&G UK Property I Inc
Initial charge-
Annual charge-
Min single investment£1,000,000
Min regular saving£20,000
Available in ISANo
Ongoing charge (OCF)0.75%
Total expense ratio (TER)-
Bid price54.95
Offer price58.06
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeL076
L&G UK Property L Acc
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price-
CurrencyGBX
Price updated01/01/1900
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeN0CJ
L&G UK Property R Acc
Initial charge-
Annual charge-
Min single investment£500
Min regular saving£100
Available in ISAYes
Ongoing charge (OCF)1.5%
Total expense ratio (TER)-
Bid price73.19
Offer price77.33
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeL075
L&G UK Property R Inc
Initial charge-
Annual charge-
Min single investment£500
Min regular saving£100
Available in ISAYes
Ongoing charge (OCF)1.5%
Total expense ratio (TER)-
Bid price52.23
Offer price55.18
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeL074
Data provided by

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