Legal & General operate a UK Property Fund. When searching for a place to invest in this fund, most websites offer a "feeder" fund instead, such as Charles Stanley.

What is the difference between this property fund, and the "feeder" fund? Is it possible to invest in the main fund, or must an individual investor invest in the feeder variety instead?

The investment would form a part of an ISA, so the amount invested would be less then the £15k yearly ISA maximum.

1 Answer 1


Property unit trusts have a couple of issues that closed end funds like TR property don't have.

I suspect the feeder fund is designed to be more flexible in allowing redemptions - the problem is that unlike IT's Property Unit trusts have to keep a % of cash on hand univested to meet the redemption needs - which hampers performance compared to an IT which can go to 100% invested and you can just sell your shares

Also property has been v popular over the last few years so I think your running the risk of buying what was popular last year.

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