Following the temporary suspension of the M&G Property Portfolio and M&G Feeder of Property Portfolio funds on 4 December 2019, we've prepared this helpful FAQ to provide more detail.
M&G Property Portfolio and M&G Feeder of Property Portfolio suspension
Frequently asked questions
M&G decided to temporarily suspend the M&G Property Portfolio and M&G Feeder of Property Portfolio funds on 4 December 2019. The suspension was effective from the midday valuation point. The decision was taken in conjunction with the funds’ Depositary. Details of the impact on investors can be found here.
The length of the suspension hasn’t been confirmed, only that the position will be reviewed on a monthly basis. Regular updates will be posted at www.mandg.co.uk/adviser/.
M&G has provided the following explanation about the fund suspensions:
‘In recent months, continued Brexit-related uncertainty and ongoing structural shifts in the UK retail sector have prompted unusually high outflows from our property fund for retail investors. Given that these circumstances and deteriorating market conditions have significantly impacted our ability to sell commercial property, we have temporarily suspended dealing in the interests of protecting our customers.’
The suspension applies to dealing, so buys and sells cannot be placed. Stock transfers and re-registrations can continue to be placed.
The funds will still be actively managed during the suspension and M&G is waiving 30% of its annual charge, which will end when the funds resume dealing.
Yes, the funds will continue to operate as normal in all other respects and income payments will continue to be paid.
If the investor has chosen to re-invest any growth then this will be paid in cash, rather than re-invested.
No. Trades have been suspended including regular investments. Any regular contributions to the funds won’t be sent and will remain in cash. Any other assets in a regular contribution will be instructed as normal. For regular investments into pensions, the tax relief portion will follow the same investment pattern as the regular contribution.
Yes, re-registrations including this fund will be accepted during the suspension period.
M&G has confirmed the suspensions impact all trades placed after midday on 4 December and any trades submitted after 12:00 noon on 4 December for valuation at 12:00 noon 5 December will be rejected (including share class conversions and switches).
Our process means we aggregated all requested trades at 11am on 4 December and sent these to M&G. We can confirm all of these have been honoured and settled. Any trading requests made on our platform after 11am on 4 December will be cancelled as they’ve been rejected by M&G. For buys, this means cash will be returned to accounts and for sells, the units will remain in the relevant fund.
Yes. The fund still has a value and will be priced throughout the suspension.
We’re checking with M&G on their approach in these situations and will provide details as soon as possible.
No. All assets other than the suspended asset will be sold as directed unless an additional or amended instruction is received.
We are checking with M&G on their approach to cancellation rights.
In this situation, this fund will be excluded from the sell down before allocating assets.