Suspension of M&G Property Portfolio
Listed Under: News
One of the UK’s biggest property funds M&G Property Portfolio that is worth £2.5bn has been temporarily suspended. The firm have said that withdrawals totaling £1.1bn over the last year are the reason for the suspension and that “Brexit-related political uncertainty” has been an important factor to investors consistently withdrawing.
M&G stated that due to being unable to sell commercial property fast enough they were unable to keep up with the demand of withdrawals reducing its cash position to 4.8%. The funds will still be actively managed during this time, but investors are unable to place any deals. Due to the suspension M&G is waiving 30% of its annual charge.