M&G suspends trading in £4.4bn property fund


M&G Investments has temporarily suspended trading in the M&G Property Portfolio and its feeder fund, following in the footsteps of Standard Life Investments and Aviva Investors, which have made similar moves this week due to liquidity concerns following Brexit.

The asset manager confirmed redemptions in the £4.4bn fund have “risen markedly” due to uncertainty created from the outcome of the European Union referendum. The fund had 6.7 per cent in cash at the end of June.

The decision is effective for orders placed after midday on 4 July and M&G will review the suspension every 28 days.

The suspension would give the fund manager time to raise cash levels to protect the funds’ shareholders by ensuring any asset disposals could happen at reasonable values.

Redemptions have now reached a point where M&G believes it can best protect the interests of the funds’ shareholders by seeking a temporary suspension in trading.

The fund is invested in 178 UK commercial properties across retail, industrial and office sectors.