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M&G follows Aviva to halt property fund

By Ravender Sembhy

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."

Aviva earlier suspended trading in its £1.8bn property fund, saying incresed requests to sell units in the trust, and challenging market conditions, had led to reduced cash reserves.

Belfast Telegraph