M&G suspends £2.5bn property fund blaming Brexit
Investors in the UK’s biggest commercial property fund – worth £2.5bn – have been temporarily prevented from taking out their money.
Investment firm M&G said withdrawals from its property portfolio fund had been suspended after investors consistently withdrew their savings.
The firm blamed “Brexit-related political uncertainty” and difficulties in the retail sector for the situation.
The fund has shrunk by £1.1bn so far this year.
“Given these circumstances, we have now reached a point where M&G believes it will best protect the interests of the funds’ customers by applying a temporary suspension in dealing,” M&G said in a statement.
It has waived 30% of its annual charge to investors, as they were unable to access their money, although some have called for action from the regulator on such charges.
The M&G Property Portfolio has invested in 91 UK commercial properties across shopping centres, other retail, industrial and office sectors on behalf of UK investors.
The same fund was suspended in July 2016 for four months following the UK’s EU referendum when money flooded out of such funds.