M&G has confirmed that its Property fund will remain suspended as it continues the process of selling properties to boost the cash position - https://www.mandg.co.uk/adviser/articles/property-portfolio-temporary-suspension-adviser/
Ryan Hughes, head of active portfolios at AJ Bell, comments:
“With cash in the fund at just under 5% at the end of December and a further 7% of the fund currently under offer, the portfolio managers will want levels to be much higher before they are in a position to re-open. They will be very conscious to ensure there is a sufficient cash buffer following the re-opening, as the last thing they want is for the fund to have to suspend again if redemptions accelerate.
“With this update coming out at the same time as Woodford investors being told about their first payment, it reminds people of the dangers of having illiquid assets in daily traded funds. While other major property funds have avoided succumbing to a similar fate, investors need to understand the liquidity risk they are taking when investing in assets that are hard to sell in challenged markets.”
The M&G property fund is £2.36bn in size and was down 7.6% in 2019.