Fund to watch: Legal and General UK Property

Retail parks in Scotland, a distribution centre in Stafford, and an office block in the centre of London are among the different types of commercial properties owned by the Legal and General UK Property fund.

The portfolio, which aims to achieve long-term growth and income, invests in a limited number of individual holdings that are handpicked by managers Matt Jarvis and Michael Barrie.

These returns are generated from the payment of rents, with the managers selecting tenants that will be most able to meet these obligations, as well as through increases in the value of the properties held. Neither, of course, are guaranteed.

For more on the property sector, read: The Briefing: Property.

At present, the fund has 70.44% in direct property holdings, with 23% in cash, 6.20% within indirect property, and 0.36% in reserved cash (developments), according to the most recent fund factsheet.

As far as geographic exposure is concerned, 13.8% is held in both the West Midlands and central London, with 8.18% in Scotland, and 6.09% in the North West. The other regions, each of which account for less than 6%, include the South East.

Industrials has the highest sector exposure, followed by 12.56% in London office space, 9.51% in retail warehouses/supermarkets, and 9.31% in regional offices. Leisure, high street retail, and retail shopping centres are each worth less than 5%.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.