London-based asset managers Legal & General and Federated Hermes announced on Monday that the Federated Hermes Property Unit Trust had merged into the L&G Managed Property Fund, creating a single platform with a value of £4.7 billion ($6.3 billion; €5.3 billion). In this episode, the editorial team digs into the details of this story, which involves two of the oldest and largest open-ended property funds. Listen as we reflect on what the deal says about the evolution of the country’s pension schemes and their shifting preferences regarding private real estate. Despite both funds being long-established – the L&G MPF in 1971 and FHPUT in 1967 – a key difference between the two vehicles is the nature of their investor base. The majority of MPF’s investors are defined contribution pension schemes. With DC plans, members’ retirement income is determined by a combination of contributions and investment returns, while FHPUT comprises mostly defined benefit pension schemes, as well as local government pension schemes. Listen as Charlotte D'Souza and Joe Marsh join Lucy Scott to discuss how changes in the UK pensions landscape have shaped the opportunity. The team also explores how this merger – which is a rare event – was achieved. Plus, we'll hear from Michael Barrie, head of real estate, UK and Europe at L&G, who spoke to PERE soon after the announcement to explain the changing landscape for DB and DC schemes and how L&G has responded to it.