M&G suspends £2.5bn property fund as assets plummet

Following waves of outflows

The M&G Property Portfolio has been suspended following "unusually high and sustained outflows", with the fund’s AUM declining by roughly £1bn since the start of the year.

In a statement on Wednesday (4 December) M&G blamed "Brexit-related political uncertainty and ongoing structural shifts in the UK retail sector" for its inability to sell commercial property at the rate required to meet investor redemptions. Total AUM has fallen by 27.9% since the start of the year, falling from £3.5bn to £2.5bn over the period, according to FE Fundinfo. Performance has also suffered over the course of 2019, with the fund down 7.8% over one year to 4 December, compared to an average loss of 0.1% for the IA UK Direct Property sector.   The fund was one of a number of v...