M&G investors banned again from exiting troubled €3b fund

Investors in M&G's flagship fund are still unable to reach their money, after the company extended a ban on withdrawals for another month.

In a statement issued today (Thursday), the firm said: ‘M&G is to continue the temporary suspension of dealing in the M&G property portfolio and its feeder fund until further notice.’

Investors have been locked out from accessing their money since last month, when M&G imposed the measure on its €3 bn commerical property portfolio.

The move was triggered by what were described as ‘unusually high and sustained outflows.’ Around €1 bn was reportedly withdrawn from the fund over the course of 12 months.

At the time, M&G blamed ‘Brexit-related political uncertainty and ongoing structural shifts’ for making it hard to trade assets in the UK.

Since the surprise move, M&G has been divesting assets such as retail parks to make up the cash shortfall.

Among the most recent sales has been that of Ravenside retail park in London. The price achieved was €60.6 mln (£51.4m) – not much more than the €56.8 mln (£48.2m) which M&G acquired the asset for, back in 2009.

Under the rules, M&G must review the share trading ban each month. Announcing the extension, the firm said it was ‘protecting the fund’s investors.’

‘The immediate priority is to raise cash levels in a controlled manner. The fund managers and associated teams are working hard to increase the fund’s cash position,’ it said in a statement.

‘Once cash levels have been sufficiently restored, the fund’s authorised corporate director will reopen the fund for dealing.’


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