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M&G Feeder of Property Portfolio

1. Fund details  
Companies impacted Old Mutual Wealth Limited
Old Mutual Wealth Life & Pensions Limited
Old Mutual Wealth Life Assurance Limited
Fund Group M&G Securities Limited
Fund Name M&G Feeder of Property Portfolio
Type of change Fund Suspension
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 units in the M&G fund will be included in the overall value of your investments you will see online and in statements. As it is not possible to buy or sell units in a suspended fund, you will be unable to top-up (either via regular direct debit or on an adhoc basis), switch into or out of the fund 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.

What happens next?

The fund suspension will remain in place until we are notified that the suspension instruction has been lifted. Based on the information we have received so far, the suspension could be in place for a number of months.

The Questions and Answers below also provide details of what you can and can’t do if you are invested in the fund.

View our Q&A’s for investments in our Platform products.

View our Q&As for investments in Old Mutual Wealth Life Assurance products.