M&G Property Fund suspensions

Information for investors about the M&G Property Fund suspensions.

The M&G Property Portfolio and the M&G Feeder of Property Portfolio have today been suspended following ‘unusually high and sustained outflows’. M&G have stated the following in a letter to investors:

‘In recent months, continued Brexit-related uncertainty and ongoing structural shifts in the UK retail sector have prompted unusually high outflows from our property fund for retail investors. Given that these circumstances and deteriorating market conditions have significantly impacted our ability to sell commercial property, we have temporarily suspended dealing in the interests of protecting our customers.

The assets owned by the M&G Property Portfolio, such as office buildings and shopping centres, are held for the long term and take time to buy and sell, making it difficult to immediately meet sudden and sustained levels of redemptions. Suspending the funds at this time will allow the fund managers, Fiona Rowley and Justin Upton, time to restore the cash levels by selling assets in an orderly manner and preserve value for our investors.

The decision to suspend was taken in agreement with the funds’ Depositary and we have informed the Financial Conduct Authority. We are unable to say how long the funds will be suspended for, but we will formally review the suspension on a monthly basis and will keep you updated via the M&G website.

The funds will still be actively managed during suspension, but we understand that being unable to deal in the funds is very frustrating for our customers. In recognition, M&G is waiving 30% of its annual charge, which will end when the funds resume dealing.

In all other respects, the funds will operate as normal and you will continue to receive income payments, fund reporting and updates as usual.’

Please read the full letter for further information.