Fund houses have moved to reassure investors they have enough of a cash buffer to meet investor redemptions, in the wake of the suspension of dealing in the M&G Property Portfolio fund on Wednesday (4 December).
M&G said it would shutter its £2.5bn open-ended property fund following "unusually high and sustained outflows", which data from Morningstar estimates at £950m in the year to 30 November. It also blamed "Brexit-related political uncertainty and ongoing structural shifts in the UK retail sector" for the move. Its AUM has declined by more than a quarter since the start of the year, from £3.5bn, data from FE Fundinfo shows. M&G's share price fell by around 8% from when the news broke to 9.30 on Thursday morning, to 215p. The episode has sparked fears of a knock-on effect similar to th...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
