Name Description Fund Range Effective Date
M&G Property Portfolio fund Change to fund Old Mutual Wealth Life Assurance Limited and Old Mutual Wealth's platform 18 Jan 2013
Changes to the M&G Property Portfolio Fund

Following unit holder approval, the M&G Property Portfolio fund will convert to a Property Authorised Investment Fund, the M&G PAIF, on 18 January 2013. The PAIF will report income in up to three streams depending on the income’s source – rental income (property returns), interest or dividends – and enables eligible investors to receive income in authorised UK property funds on a gross basis.

Currently the different income streams offered by PAIFs cannot be supported by the different Old Mutual Wealth platforms. In order to provide continued access to M&G’s property expertise, Old Mutual Wealth will be launching the M&G Feeder of Property Portfolio fund on the platform, which will invest in the M&G PAIF. Old Mutual Wealth is looking at long-term solutions for extending its system functionality to manage the different income streams offered by funds such as PAIFs and thus passing on the benefits to eligible investors.

Importantly, at the time of writing it is unclear which of the two funds (the M&G PAIF and the M&G Feeder of Property Portfolio fund) will retain the track record of the M&G Property Portfolio. Depending on the outcome of these decisions, there may be implications for PDPs, USkan and within the fund research engine.

We’ll provide further details and inform you of any potential implications of this decision when we have received confirmation of the outcome.