M&G property fund hit by £800m outflows
Investments have been withdrawn from property fund (pic: Terry Murden)
M&G Property Portfolio and its Feeder fund have been hit by a series of outflows since reopening for dealing last month.
Trading in the open-ended real estate fund was suspended for almost a year and a half until 10 May when investors had their first chance to take their money out.
The fund is widely held by private individuals among investors who withdrew £806m from the main fund last month, according to Morningstar estimates.
This led to the fund’s assets shrinking from £2.1bn to £1.3bn by the end of May.
A spokesperson for M&G said they did not comment on fund flows outside of reporting periods but that they had been consistent with expectations.
Investors’ money had been tied up in the fund since December 2019 when M&G suspended dealing among concern it would be unable to meet redemptions amid Brexit jitters in the commercial property market.
The M&G fund was one of the last in the direct real estate sector to resume dealing. Aegon’s Property Income fund remains closed, while Aviva Investors is shutting its £366 million UK Property fund a year after it suspended dealing, saying there is not enough liquidity to reopen it.