Property portfolio suspended

M&G is temporarily suspending dealing in the shares of its £2.54bn M&G Property Portfolio with immediate effect. This is the latest open-ended product to suspend withdrawals and the first in the property sector since a number of funds were ‘gated’ after the Brexit vote in 2016. Investors will not be able to access their assets during the suspension, which will end when the funds resume dealing. During the suspension M&G will waive 30% of their fee.

M&G said in a statement: “In recent months, unusually high and sustained outflows from the M&G Property Portfolio have coincided with a period where continued Brexit-related political uncertainty and ongoing structural shifts in the UK retail sector have made it difficult for us to sell commercial property.

“Given these circumstances, we have now reached a point where M&G believes it will best protect the interests of the funds’ customers by applying a temporary suspension in dealing.”