LIMITED PRICE INFLATION (LPI) INCOME PROPERTY FUND

CONTACT DETAILS

For further information on how to invest in this fund please contact your client account manager or.

 

Name:
Pete Gladwell
Position:
Business Development Manager
Phone: 020 3124 2770
 
Email: pete.gladwell@lgim.co.uk       
 

 

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Inflation Hedging Strategies from Property

 

 

 

"Simply the best."

 

"Legal & General Property has managed to deliver performance whilst maintaining liquidity - a rare feat in these markets."

 

Professional Pensions    June 2009

 

The Limited Price Inflation (LPI) Income Property Fund is to be launched in early 2010 and is an open-ended Fund available to Defined Benefit pension schemes only. It provides an innovative way to invest in property with a secure source of income, primarily government-backed, all with inflation-linkage.

Providing pension investors with an attractive alternative to traditional index-linked gilts and bonds. The fund aims to deliver a real (i.e. inflation-hedged) yield in excess of 4% per annum. To achieve this, the portfolio will be structured around properties whose value is predominantly derived from their leases.


 

 

 

Important Lock in Provisions
This Fund contains a number of lock-in provisions and it is important that these are fully understood before investing into the Fund.
To avoid penalising investors in the Fund and ensure stability during the launch period, a two year lock-in period will be in place from the Fund’s launch. At the expiry of this period, Trustees should expect to wait nine months between the submission of any redemption request and receipt of proceeds from realising the underlying investments. However, endeavours will be made to match inflows and outflows monthly and meet any redemption request sooner than this where possible, without jeopardising the interests of the remaining investors.
Investors will commit an amount for investment to the Fund. This will be expected to be drawn down between three and 12 months from commitment.
 

The Fund is a section within the Legal & General Assurance (Pensions Management) Limited (PMC) pooled fund policy, a unit linked life insurance policy, only available to defined benefit pension schemes.