Friday Briefing: The open-ended property question

Friday Briefing

Three months after LGIM suggested it might convert its open-ended UK direct property fund to a hybrid model, the fund house confirmed the thought has become a decision.

The move not only increases the liquidity profile of the fund, with REIT shares considerably easier and faster to offload than property, but also reduces the large cash holding, which currently stands at c.20%. (Importantly, the 45% direct property weighting is also likely to exclude it from the FCA consultation into the market - h/t Quilter Cheviot's Oli Creasey). Friday Briefing: A nation is a complicated thing Prior to 2020's widespread suspensions across the UK direct property sector, such hefty cash weightings were far from commonplace, and ever since the surviving funds opted...