M&G Investments to Reopen its Property Portfolio 

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22 April 2021

M&G Investments has announced that it will reopen its £2 billion property fund for dealing as of midday on 10 May 2021. 

The M&G Property Portfolio and its feeder fund, the M&G Feeder of Property Portfolio (the funds) was suspended in December 2019, due to Brexit uncertainty and changes in the retail sector.

Laurence Mumford, Chair of the Fund’s ACD, M&G Securities Limited, noted that the company deeply regretted the inconvenience that suspension has caused for their customers and clients:

“The decision to suspend was taken to protect the interests of all of our investors, enabling the fund manager to sell assets in an orderly fashion. We believe this has preserved value for customers, while also maintaining the integrity and future prospects of the fund.”

Reduced Portfolio Risk

38 properties have been exchanged or sold by the fund’s manager, Justin Upton, resulting in reduced portfolio risk, strengthening the fund’s income stream and decreasing the vacancy rate to 7.2 per cent. 

All assets sold or exchanged during suspension were at a combined -0.1 per cent discount to their net asset value, of which 38.8 per cent were disposals of retail properties. 

More than 90 per cent of both rental income and service charges for 2020 has been collected and the fund has delivered an income distribution of 4.7 per cent.

Charges Waived

In recognition of the inconvenience caused to customers and clients, M&G has waived 30 per cent of the fund's annual charge during the suspension. This will continue until the fund reopens. M&G will also continue to waive the fee on cash held above 20 per cent until the end of 2021.

Picture: a photograph of a large commercial building with small windows

Article written by Ella Tansley | Published 22 April 2021

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