Legal & General has renamed its £1.3 billion UK Property Trust after converting it in to a tax efficient Property Authorised Investment Fund (Paif).
The newly-named Legal & General UK Property Fund joins other recently conversions by Standard Life Investments, Ignis Asset Management and Kames Capital
A Paif uses a tax-friendly structure whereby rental income and interest distributions can be paid out gross to qualifying investors, particularly benefiting those investing through an ISA or within a pension. Unit holders who are ineligible or unable to invest in a PAIF can access the fund by receiving units in a feeder fund.
'Our unit holders were overwhelmingly in favour of converting the fund and can now start to benefit from new tax efficiencies when investing in UK real estate,' said Michael Barrie (pictured), co-fund manager of the Legal & General UK Property fund.
Legal & General Property manages £13.1 billion of assets in property, as at 31 March 2014. In three years to the end of March, the Legal & General UK Property trust has returned 12.2%, compared with 13.2% for the IMA Property sector.