The M&G Property Portfolio is a broadly diversified fund which invests in 91 UK commercial properties across retail, industrial and office sectors on behalf of UK retail investors.

The suspension means that investors have been temporarily prevented from withdrawing their money from the portfolio.

M&G said that the fund had been suspended after investors continuously withdrew their savings.

The company said it had experienced ‘unusually high and sustained outflows’ from the fund which coincided with a ‘period where continued Brexit related political uncertainty and ongoing structural shifts in the UK retail sector have made it difficult for us to sell commercial property.’

M&G stated that in light of the circumstances, it has now reached a point where ‘M&G believes it will best protect the interests of the Fund’s customers by applying a temporary suspension in dealing.’

The firm added that the Funds will continue to be actively managed in suspension, but in recognition of customers’ temporary inability to access their investment, M&G is waiving 30% of its annual charge, which will end when the Funds resume dealing. 

M&G said that in accordance with the Fund’s strategy, the suspension will allow the fund managers time to raise cash levels to pay redemptions, whilst ensuring that asset sales are achieved at market prices and investors in the Fund are safeguarded. In all other aspects, the Fund will continue to operate as normal throughout the suspension and customers will continue to receive income payments.

The decision to suspend was made by M&G Securities Limited, the Fund’s authorised corporate director, in agreement with the fund’s depositary and the Financial Conduct Authority has been informed.

The suspension will be monitored daily, formally reviewed every 28 days and will only continue as long as it is in the best interests of our customers, reopening as soon as liquidity levels have been sufficiently rebuilt.