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M&G Investments suspends trading in property fund amid Brexit fallout

Published 05/07/2016

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File photo dated 7/11/2014 of Fifty, Twenty, Ten, and Five pound notes. Investment scam victims are losing £20,000 on average to frauds which may involve fake diamonds, bogus stocks and shares and fine wines that do not really exist, Citizens Advice is warning.

Asset manager M&G Investments has temporarily suspended trading in a property fund after investors moved to pull out of UK commercial property following the Brexit vote.

M&G has joined Aviva Investors and Standard Life, which have both made similar moves as uncertainty continues to mount over the UK economy.

In a statement, the company said it had enforced the temporary suspension of trading in the shares of the M&G Property Portfolio and its feeder fund.

It added: "Investor redemptions in the fund have risen markedly because of the high levels of uncertainty in the UK commercial property market since the outcome of the European Union referendum.

"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 M&G Property Portfolio fund has £4.4 billion of managed assets and invests in 178 commercial properties across the UK.

The firm said the suspension will give fund managers time to "raise cash levels in a controlled manner" and ensure any asset sales are made at "reasonable values".

The move comes after Aviva suspended trading in its £1.8 billion property fund as investors scramble to pull their money out of UK commercial property holdings following Britain's vote to leave the European Union.

Aviva said it had taken the decision after "experiencing higher than usual volumes of requests to sell units", while tough trading conditions in the wake of the Brexit vote had driven down cash levels held by the trust.

Standard Life Investments made the same move on Monday when it halted dealing in its £2.7 billion UK Real Estate fund.

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