M&G has finally closed its property portfolio two and-a-half years after first announcing the £565m fund would be liquidated, Portfolio Adviser can reveal.
It is understood that M&G closed the fund for good on 4 June, with the final capital repayment due to be issued by tomorrow, 9 June. Customers should receive the final payment into their accounts by 23 June.
M&G’s Property Portfolio and the M&G Feeder of Property Portfolio were suspended in October 2023 following a decline in popularity of property funds and a surge in redemption requests, which made liquidity difficult to manage. M&G determined it would have to sell larger assets to manage withdrawals, which would be expensive and negatively impact performance.
When the fund officially began winding up in December 2023, it was expected to take around 18 months for all of the assets to be sold, but low commercial property transaction activity in 2024 meant some assets took longer than expected to be sold.
However, M&G confirmed all assets had been sold by mid-May, enabling it to make final payments to investors and close the fund.
A spokesperson for M&G told PA: “We are pleased to have reached a conclusion for our clients, with a continued focus throughout on delivering fair outcomes for investors.”
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