Rolling coverage of the latest economic and financial news, as UK asset manager surprisingly freezes a major property investment fund
- Latest: M&G temporarily suspends property fund
- Fund manager blames Brexit and high street crisis
- “Brexit-related uncertainty” causing high outflows
- M&G can’t sell assets fast enough to meet redemptions
- Pound rallies as Conservatives hold lead
M&G investors could be trapped in the Property Portfolio fund for some time.
Laura Suter of stockbroker AJ Bell points out that the fund was closed for two months after the Brexit vote:
Worth noting that M&G Property fund took the longest to re-open in the post-referendum suspensions – was closed from July to November
M&G’s problems may have been exacerbated by the crisis at Neil Woodford’s asset management empire.
Woodford was forced to freeze his once-popular Woodford Equity Income fund this summer, after a wave of redemption requests. Investors now face massive losses – they could lose two-thirds of their money once the fund is wound down.