The decision follows a review carried out after fund manager Gillian Tiltman left last August. M&G concluded that the fund is ‘not commercially viable in the long-term’ so closure is in the interests of existing fund shareholders. The FCA has approved the move.
“The M&G Global Real Estate Securities Fund has failed to attract the level of interest we expected from external investors,” said Gary Cotton, chief executive of Equities. Gillian’s departure triggered outflows so it has become increasingly difficult to manage the fund in a cost-effective way.”
The fund will continue to be managed by Richard O’Connor until its closure on 22 May.
Shareholders may either redeem their shares for cash or switch their holding free of charges to an alternative M&G fund.
The fund was launched in April 2008 with the aim of maximising returns by investing globally in real estate investment trusts (REITs) and listed shares of real estate companies.
