Ignis Fund Managers Ltd have recently announced that they are to convert the Ignis UK Property Fund into a new fund, the Ignis UK Property PAIF. PAIF stands for ‘Property Authorised Investment Fund’. This is a type of collective investment that must invest in physical property (either commercial or residential), UK Real Estate, Investment Trusts or foreign equivalents.
Ignis Fund Managers Ltd is converting the UK Property fund into a PAIF to provide a more tax-efficient income for eligible investors in the fund. For those who are not eligible to invest in a PAIF, Ignis Fund Managers Ltd have set up a feeder fund (in the form of a unit trust) which will invest solely into the Ignis UK Property PAIF, to ensure that all investors are able to access Ignis’ property expertise.
The conversion will not affect the value of clients’ fund holding, or in the opinion of the fund manager the risk profile of the fund.
At Portfolio Financial Consultancy Ltd we are satisfied that his change offers benefits to our clients investing in this fund. We believe the conversion is a good move as it has the potential to enhance the level of investment return.