LGIM launches property index fund

UK real eastateInvestors looking for income from property have the option to tap real estate companies and investment trusts through an index fund from Legal & General Investment Management (LGIM).

LGIM, one of the largest index managers in the UK, has launched the Global Real Estate Dividend Index Fund which carries an ongoing charge of 0.20% and references the FTSE Epra/Nareit Developed Dividend Plus Index.

LGIM’s index funds team managed £264 billion (€348 billion) of assets (at September, 2015) out of £717 billion total assets under management for the firm.

LGIM also says it will shortly launch a local currency emerging market government bond index fund with a charge of 0.35%. The fund will be named Legal & General Emerging Markets Government Bond (Local Currency) Index Fund and will track the JPMorgan GBI-EM Global Diversified Local Currency Index.

Honor Solomon, head of retail distribution in Europe, Middle East and Africa, said: “Advisers and wealth managers are increasingly looking to index funds as a straightforward means of consistently generating market returns across a range of asset classes whilst reducing overall portfolio costs.”

Real estate and local currency emerging market bonds have the potential to provide an attractive income, said Solomon.

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