Last updated: 00:19 / Thursday, 3 November 2016
And Promotes Sam Ford

M&G to Resume Trading in M&G Property Portfolio

Imagen
M&G to Resume Trading in M&G Property Portfolio

Effective from noon on Friday 4 November 2016, M&G Investments (M&G) will resume trading in the shares of the M&G Property Portfolio and its feeder fund, the M&G Feeder of Property Portfolio. The M&G Property Portfolio is a broadly diversified fund, which after all sales, will invest in 119 UK  commercial  properties  across  retail,  industrial  and  office  sectors  on  behalf  of  UK  retail  investors. 

The decision was taken in agreement with the Depositary and Trustee and the Financial Conduct Authority has been informed. The fair value adjustment originally applied on 1 July 2016 has also been removed in full.  

M&G  announced  a  temporary  suspension  on  5  July  2016  after  investor  redemptions  rose markedly  due  to  high  levels  of  uncertainty  in  the  UK  commercial  property  market  following  the outcome of the European Union referendum.  

William Nott, chief executive of M&G Securities, says: “Suspending the fund wasn’t a decision we took lightly, but we felt it was the only way to protect the interests of investors in what were very unusual circumstances in the aftermath of the referendum. Suspension created an environment more akin to normal conditions, allowing us time to choose the most appropriate assets to sell at the right price in order to preserve the integrity and future of the fund. As such, the fund manager has kept higher quality assets while reducing the exposure to assets deemed riskier than their prime counterparts, putting the portfolio in a good position for any further volatility that may be experienced in the lead up to Brexit.” As confidence returns to the market, 58 properties have been sold, exchanged or placed under offer for a total of £718 million.  

Meanwhile, and effective January 1st, 2017, Sam Ford will be the new manager of the £598 million M&G UK Select Fund given the incumbent  manager, Mike Felton is  leaving M&G. Until the end of the year, the fund will be managed  by  co-deputy  managers  Garfield  Kiff  and Rory Alexander.

 

menu
menu