A fund manager on the suspended M&G Property Portfolio is to exit the business as BMO Global Asset Management reveals one of its funds is to reopen after suspending during the coronavirus pandemic.
The M&G Property Portfolio had initially suspended due to liquidity problems, but has also been hit by the material valuation uncertainty that plagued physical UK property funds. The BMO Gam fund had been suspended only due to valuation uncertainties.
Fiona Rowley had been part of the M&G real estate team for 27 years. Co-manager Justin Upton will assume full fund management responsibility once Rowley departs.
Rowley said in a statement: “I’ve had a fantastic career at M&G, which wouldn’t have been possible without the encouragement and continued support from senior management in my progression ultimately to become a fund manager.
“Having had such a close working relationship with Justin and the support of a highly experienced team behind the scenes, has made my decision so much easier and gives me and the business comfort that I leave the fund in the very best of hands.”
Trading in the fund has been suspended since December 2019.
The latest update said it would reopen “once cash levels have been sufficiently restored and the material uncertainty clause has been lifted”.
Upton said he would be focusing on delivering “healthy income” while managing higher levels of liquidity against the backdrop of Covid-19.
BMO Gam lifts suspension with 30% in physical property
Meanwhile, BMO Global Asset Management has lifted the suspension on its Property Growth & Income portfolio.
The £490.4m fund, managed by Marcus Phayre-Mudge and George Gay, has much less exposure to UK physical property than some of its peers with 28.8% held in the asset class.
The fund initially had to suspend on 18 March because its independent valuer, Knight Frank, had deemed more than 20% of the portfolio faced material uncertainty over valuation. But an update on the BMO Gam website today said that now only 7% of the portfolio faced material uncertainty over valuation.
The uncertainty has been lifted on the industrial and logistics sectors in the UK.
The remainder of the portfolio is 43.8% in continental property shares and 23% in UK shares. It holds 4.4% in cash.
