Writing to shareholders on 25 March, Lee Toms, director, Legal & General Unit Trust Managers, said the "round trip" spread would reduce to 1.11% from 6.34% from 1 April 2022.
Janus Henderson fund closure an 'ill omen' for wounded open-ended property sector
He acknowledged that while the total size of the fund had grown because of strong performance, a separate review of the property funds' flow pattern found that continued redemptions left it unlikely the manager could make any direct property purchases.
As such, they found it was "in the best interest of subscribing investors to reduce the spread on entry so that investors are not paying towards transaction costs that will not be needed".
The spread on redemption and valuation for existing holders remains unchanged.