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Liquidity restored

M&G reopens property fund after selling retail assets

Money

Investors withdrew savings

M&G Investments is reopening its £2.1bn property fund, 17 months after it was suspended because of liquidity issues.

The asset manager said the M&G Property Portfolio and its feeder fund, the Feeder of Property Portfolio, will resume dealing on 10 May.

In a statement the company said there is now “suitable liquidity” for client withdrawals, as well for those who want to remain invested.

The fund closed in December 2019 as investors took fright at the looming Brexit deadline and withdrew their savings.

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During suspension 38 properties were sold for £702m, reducing the total number of holdings to 54.

In total, 38.8% of the disposals were retail properties, M&G said. It has reduced its exposure to the struggling sector from 38.4% to 28.1% to focus on industrials. The portfolio’s cash position now stands at 33.2%.

Laurence Mumford, chairman of the fund’s authorised corporate director, said: “We deeply regret the inconvenience that suspension has caused our customers and clients.

“The decision to suspend was taken to protect the interests of all of our investors, enabling the fund manager to sell assets in an orderly fashion.”



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