Pricey tracker fund calls into question M&G’s value for money assessment
Asset manager praised for level of introspection but tracker costs some seven times more than a rival equivalent
Aspects of M&G’s latest value for money assessment have been called into question, after an expert pointed out that the asset manager’s tracker fund costs some seven times more than a rival’s equivalent.
In its second assessment of value (AoV) report M&G admitted 60% of its funds “must improve” their investment performance, however the asset manager said that most of its range offers value for money.
M&G reopens property fund after flogging retail assets
M&G suspended dealing in the property fund in December 2019
M&G has reopened its property portfolio after flogging its retail assets more than a year after it froze dealing in the fund amid a surge in investor withdrawal requests.
The asset management giant said today it will unfreeze the funds for dealing from 10 May.
It suspended the property portfolio in December 2019 amid a jump in investors asking to withdraw their savings.
Since then, the firm has reduced portfolio risk, strengthened its income stream and lowered the vacancy rate to 7.2 per cent by selling 38 properties, at an average 0.1 per cent discount to their net asset value.
BBC News
By Kevin Peachey
Published
image copyrightGetty Images
A major £2bn UK commercial property fund that has been suspended since December 2019 - locking in investors money - will resume trading next month.
Investment firm M&G said investors would be able to access its property portfolio fund again from 10 May.
The fund had been hit by the effects of Brexit uncertainty and troubles in the retail sector, and was suspended after investors consistently took money out.
M&G apologised for the inconvenience the suspension caused. The decision to suspend was taken to protect the interests of all of our investors, enabling the fund manager to sell assets in an orderly fashion, said Laurence Mumford, who chairs the fund s authorised corporate director, M&G Securities Limited.
Home / News / M&G to unfreeze £2bn Property Portfolio after nearly year and a half suspension
M&G to unfreeze £2bn Property Portfolio after nearly year and a half suspension
Property Portfolio suspended in December 2019 due to liquidity issues
M&G Investments is set to re-open its beleaguered £2bn Property Portfolio, which has been in limbo for the past 16-months, in May.
The property fund was forced to close its doors on 4 December 2019 due to liquidity reasons after its independent valuer Knight Frank slashed the value of its retail holdings, prompting a wave of investors to head for the exit.
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