Legal & General gains control over UK real estate
The United Kingdom's National Employment Savings Trust or NEST deployed a scheme involving a 20% member asset allocation to a real estate fund. The fund will be overseen by the Legal and General Investment Management.
This one-fifth allocation was part of an auto-enrolment campaign being devised in the country. It was announced early this year that direct real estate funds will be included in its investment scope for the first time.
Legal and General Property's fund, called Managed Property Fund, was launched two years ago, catering to the needs of defined contribution schemes. The fund will enable United Kingdom and international direct property to be recognized because of its investment in Legal and General Property's balanced fund.
At the latter phase of the retirement date funds, 20% of the assets will be from real estate. These asset allocations will be reviewed by NEST chief investment officer Mark Fawcett.
"For a DC scheme, this is a relatively major allocation to real estate, which NEST expects will prove capable of delivering long-term sustainable growth for its members," he said.