M&G has switched the pricing on Fiona Rowley’s £4.7bn Property Portfolio for the third time in a month and will not rule out further price structure changes as it expects market volatility risks to persist.
The asset manager has now changed to a bid pricing structure, having already switched from offer to bid pricing in May, only to reverse its decision three weeks later.
As of Tuesday 7 June, the price of the fund is back to its bid basis as a “reflection of what investors are doing”, an M&G spokeswoman says.
The firm is not excluding a further change to the pricing in the near future.
M&G says in a statement: “As previously warned, due to volatility of flows, M&G Investments has changed the pricing basis of its M&G Property Portfolio and M&G Feeder of Property Portfolio from creation to cancellation.
“The pricing basis of the fund is monitored on an ongoing basis and the decision to return to cancellation pricing reflects a change in the balance between buyers and sellers.”
The firm says volatility around the upcoming EU referendum is also part of the current outflows in the property sector.
Most recently, Aberdeen Asset Management, Standard Life Investments, Henderson and Columbia Threadneedle switched their pricing on some of their property funds.
Aberdeen was the latest manager to change the pricing on the £3.4bn UK Property fund from a mid to a bid basis resulting in a 0.9 per cent downward price swing.