The fund manager manages a fund to achieve its goal, and you should expect a fund`s investments to change over time. The risk of the fund may also change in the future. Sometimes it can be difficult for the fund to make investments or sell assets to meet investors` desires to buy/sell shares. In this case, the fund may have a reduced investment return for a period of time or may have difficulty paying the proceeds to investors who wish to sell shares. Real estate can be difficult to buy or sell. This could mean: cash builds up waiting to be invested, so the fund underperforms when real estate returns are higher than the interest earned; and/or real estate may have to be sold for less than expected. If an exceptional number of withdrawals is requested, the fund manager may be forced to sell properties quickly. This could mean selling properties for less than expected, which would reduce the value of your investment. In times of market uncertainty or when an exceptional number of payments are requested, it may become less easy for your fund to sell real estate, and the manager may postpone withdrawals or suspend trading. The AIFM may only defer payment if it is in the interest of all investors and with the authorisation of the trustee or custodian of the fund. Rent growth is not guaranteed and unpaid rents could affect the performance of your investment. The value of a property usually depends on the opinion of the appraiser rather than the fact, and the actual value of a property can only be known after the property has been sold.
In some circumstances, we may not be able to seek the opinion of an evaluator and may apply our own assessment. The fund will undertake the development of properties where all the benefits of property appreciation or income from it will not be realized until after completion. During any development, the fund is exposed to delays, increased costs, or the inability to achieve the expected improvement in property appreciation or rent received. Following the EU referendum (June to September 2016), the manager made fair value adjustments to the fund`s real estate values. Fair value adjustments reduced property values to reflect the fair value of properties considered by the manager to be the fair value of properties until the valuation agent regained confidence in real estate valuations. Performance for the Class C Acc device in GBP, launched on May 23, 2014. Return assumes that all fund costs have been accounted for and that all investment income remains in the fund after taxes. This fund was launched on 27 May 2014 following a restructuring of the former Property Unit Trust. The performance shown combines the past performance of this fund with the performance of the corresponding class in the previous real estate mutual trust. AI sector averages include both PAIF and feeders in their calculation. The aim of this fund is to provide a combination of income and growth by investing exclusively in the Legal & General UK Property Fund (the Master Fund).
It may also hold cash when necessary to enable payments to unitholders or creditors. The fund aims for returns very similar to those of the Master Fund. The main fund typically invests at least 80% in a range of UK commercial properties (but this figure can only be 60% if the fund manager believes it is in the best interests of the fund and its shareholders). The Master Fund can invest in all types of commercial real estate. The master fund may occasionally invest in residential real estate and also develop real estate. The Master Fund may also invest in commercial properties on the Isle of Man and the Channel Islands from time to time. The Fund may use derivatives to reduce risk or costs or to generate additional capital or income without risk or at an acceptable low risk. The master fund may also invest in other property-related assets (including UK property-related shares and authorised UK investment funds), money market instruments, deposits, authorised money market-linked investment funds and government bonds.
