|1. Fund details
||Old Mutual Wealth Limited
Old Mutual Wealth Life & Pensions Limited
Old Mutual Wealth Life Assurance Limited
||M&G Securities Limited
||M&G Feeder of Property Portfolio
|Type of change
|Date effective from
||4 December 2019
Dealing in the M&G Feeder of Property Portfolio Fund has been suspended with effect from 4 December 2019.
What has happened and why?
In recent months, continued political uncertainty and ongoing structural shifts in the UK retail sector have prompted unusually high outflows from M&G’s retail property fund. Given that these circumstances and deteriorating market conditions have significantly impacted the manager’s ability to sell commercial property, the manager has temporarily suspended dealing in the M&G Property Portfolio in the interests of protecting customers who are invested in these funds.
The suspension will allow the manager to raise cash levels and preserve value for investors by selling assets in a controlled manner.
What does it mean for investors?
At the moment, the suspended fund will still be priced each day, and the value of your clients’ remaining units will be included in the overall value of their investments you will see online and in statements. As it is not possible to buy or sell units in a suspended fund, your clients will be unable to top-up (regular or adhoc), switch or make new withdrawals out of the fund.
In recognition of customers’ temporary inability to access their investment, M&G is waiving 30% of its annual charge, which will end when the funds resume dealing.
M&G Webcasts: M&G Property Portfolio - Wednesday 11 December, 10am
The fund managers will explain the events that led to the suspension and the actions to be taken to rebuild liquidity so dealing can resume as soon as practically possible.
What happens next?
The fund suspension will remain in place until we are notified that the suspension instruction has been lifted. The suspension will be formally reviewed on a monthly basis.
We will write to your clients in the fund to notify them of the suspensions, pointing them at our website Q&A and to you for further support. Please see copies of the client letters below:
Please refer to our user guides for more information on identifying your clients in the affected funds:
The Questions and Answers below also provide details of what you can and can’t do if you are invested in the fund.