News

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.

©2016 funds europe