M&G has become the latest firm to suspend trading in its property fund – following recent decisions from Standard Life and Aviva Investors.
Redemptions in the fund had risen markedly due to the uncertainty engulfing the UK commercial property market following the European Union referendum.
A statement from M&G read: “This will allow the fund manager time to raise cash levels in a controlled manner, ensuring that any asset disposals are achieved at reasonable values.
“The decision to suspend was taken in agreement with the Fund’s Depositary and the Financial Conduct Authority has been informed.
“Orders placed after 12pm on 4 July 2016 will not be processed until the suspension is lifted. M&G will review the suspension every 28 days.”
The M&G property portfolio is a broadly diversified fund which invests in 178 UK commercial properties across retail, industrial and office sectors on behalf of UK retail investors.
Around £35bn, around 7% of the total investment in UK commercial property, is invested in these property funds.