Sat. Nov 28th, 2020

M&G suspends property fund amid Brexit uncertainty and retail crisis – business live

Rolling coverage of the latest economic and financial news, as UK asset manager surprisingly freezes a major property investment fund

2.52pm GMT

The BBC’s Simon Gompertz is tweeting a handy explanation to M&G’s shock property suspension:

Temporary suspension in dealings in M&G’s big Property Portfolio investment fund, worth £2.7bn. Blames blight on UK shopping centres and streets, along with Brexit

Property funds are like funds dealing in unlisted shares (eg Woodford Equity Income) in that they can’t sell assets quickly if investors start pulling their money out

Investors pulled £750m out of the M&G Property Portfolio fund in the first 8 months of the year

2.45pm GMT

Shares in M&G have fallen by 2% since it suspended the Property Portfolio fund.

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