'The right move to make': Buyers support pricing switch on property funds

SLI, M&G and Henderson made changes

Fund pickers have backed the "prudent" decision taken by several providers to switch the pricing basis on their property funds, rather than risk bigger problems in the future.

Last week, Standard Life Investments switched the long-term pricing of its £1.4bn UK Property and £1.6bn Ignis UK Property funds from an offer to a mid basis, resulting in a downward price impact of approximately 5.5% on both funds. This followed M&G switching the pricing basis of its £4.7bn Property Portfolio fund from an offer to bid basis, while Henderson Global Investors made a similar move on its £4bn UK Property fund. These changes have resulted in a price swing lower of around 5% on the Henderson UK Property fund and 6.4% on the M&G Property Portfolio. Providers say they hav...