| Date | Action |
|---|---|
| 19 October 2023 | Suspension announcement |
| 15 December 2023 | Closure announcement |
| 29 December 2023 | Commencement of closure of the Fund |
| 8 February 2024 | First capital repayment made |
| 14 May 2024 | Second capital repayment made |
| 12 September 2024 | Third capital repayment made |
| 12 December 2024 | Fourth capital repayment made |
| 16 April 2025 | Fifth payment to be made (issued to you no later than 23 April (8 May for myM&G) |
Quick links
Fourth capital repayment announced – We’re now able to confirm the dates the fourth capital repayment will be made to customers as part of the closure of the fund. We're returning £60 million, which represents approximately 21% of the value of customer holdings as of 2 December. These payments will take place on or around the following dates, depending on what customers have opted to do with their holding:
- 12 December: for customers opting to reinvest their capital repayment into another M&G fund, the switch will take place on this date.
- 17 December: for customers who have chosen to take the repayment in cash, payment will go directly into bank accounts.
- 3 January: for myM&G customers; payment will be made directly into bank accounts (GIA) or their Cash Park (ISA/JISA).
Third capital repayment announced – We’re now able to confirm the dates the third capital repayment will be made to customers as part of the closure of the fund. We're returning £46 million, which represents approximately 13.5% of the value of customer holdings as of 4 September. These payments will take place on or around the following dates, depending on what customers have opted to do with their holding:
- 12 September: for customers opting to reinvest their capital repayment into another M&G fund, the switch will take place on this date.
- 17 September: for customers who have chosen to take the repayment in cash, payment will go directly into bank accounts.
- 1 October: for myM&G customers; payment will be made directly into bank accounts (GIA) or their Cash Park (ISA/JISA).
Since our last update on 2 May 2024, we have exchanged contracts on the sale of a Travelodge Hotel for £3.3 million and sold the majority of the fund’s real estate investment trust holdings for a total consideration of £35.7 million. We continue to execute an orderly sales process, with the view of achieving fair value for our clients and anticipate making a third capital repayment in September.
Second capital repayment announced – We’re now able to confirm the dates the second capital repayment will be made to customers as part of the closure of the fund. We're returning £50 million, which represents approximately 12.5% of the value of customer holdings as of 1 May. These payments will take place on or around the following dates, depending on what customers have opted to do with their holding:
- 9 May: for customers opting to reinvest their capital repayment into another M&G fund, the switch will take place on this date.
- 14 May: for customers who have chosen to take the repayment in cash, payment will go directly into bank accounts.
- 31 May: for myM&G customers; payment will be made directly into bank accounts (GIA) or their Cash Park (ISA/JISA).
Returning money to customers – As communicated in December 2023, we'll start to return money to our customers with a first capital repayment to be made on various dates in February 2024, depending on what they have opted to do with their holding. We're returning £91 million, which represents approximately 17% of the value of customer holdings as of today, 2 February. These payments will take place on or around the following dates:
- 8 February: for customers opting to reinvest their capital repayment into another M&G fund, the switch will take place on this date.
- 13 February: for customers who have chosen to take the repayment in cash, payment will go directly into bank accounts.
- 27 February: for myM&G customers; payment will be made directly into bank accounts (GIA) or Cash Park (ISA/JISA).
We’ve written to investors to confirm that having completed the required regulatory process, we will commence the closure of the M&G Property Portfolio on 29 December 2023. The options available to investors are detailed in the closure documentation, and also provides details on how we’ll be returning proceeds to investors, along with answers to the most commonly asked questions.
As announced on 19 October, M&G Investments intends to close the M&G Property Portfolio due to declining interest in open-ended daily dealing property strategies from UK retail investors. The decision was made in the best interests of all investors to suspend the Fund – and its feeder fund – ahead of seeking regulatory approval to close.
The FCA has given its authorisation and M&G is now in a position to finalise the closure process. In agreement with the Fund’s Depositary, the M&G Property Portfolio remains suspended whilst this takes place. We will write to customers and clients with further details as soon as we can.
We’ve written to investors in the M&G Property Portfolio and the M&G Feeder of Property Portfolio (the “Funds”) regarding the suspension of dealings and proposed closure of both Funds.
Subject to receiving approval for the closures from the FCA, we will write to investors again to provide them with further details on the closures, including the options available.
Please be reassured that the suspension of these Funds has no effect on any other M&G investments.
We will continue to publish daily prices so you can value your portfolio, but no instructions will take place at these prices while the Funds are in suspension. We’ll update this page with more information as soon as it’s available.
Please be aware that we are not in a position to give you investment advice. If you are uncertain as to how the changes may affect you, you should consult a financial adviser. Find information on how to access financial advice.
Where do I find more information on the closure and what my options are?
We wrote to investors on 15 December 2023. The options available to investors are detailed in the closure documentation available in the Quick links section. It also provides details on how we’ll be returning proceeds to investors, along with answers to the most commonly asked questions.
Why has M&G decided to suspend dealing?
It’s common for a fund closure announcement to trigger significant outflows. However, the assets owned by the Fund, such as office buildings and warehouses, cannot be sold quickly to accommodate sudden large withdrawal requests. If we didn’t suspend the Funds now, it‘s likely that only a limited number of investors would be able to sell their holdings before dealings in the Funds had to be suspended to allow the fund manager to sell more properties in order to meet further withdrawal requests. The immediate suspension will therefore protect investors in the Funds by allowing the proceeds to be paid out fairly and equitably.
It would also not be desirable to allow investors to invest in either Fund at this time. This is because under the Funds’ pricing methodology, the purchase price for Shares can be in excess of 6% higher than the price at which Shares are being sold, and investing for a short period of time is more likely to result in a negative return on investment.
The decision to suspend with a view to closing the Funds was taken in agreement with the Funds’ Depositary/Trustee and we have informed the FCA.
Will you be suspending dealing on any other M&G property funds?
No. This is the only daily dealing property fund we have.
Can I still invest or place any deals in the Funds?
No. Any instructions to buy, sell or switch in or out of Shares/Units in the Funds will no longer be accepted after 12:00 on 19 October 2023. For postal instructions on M&G, we will make our customers aware that their deals have been rejected as soon as we can after the date of receipt.
Will I continue to be charged for the fund?
The Funds will be actively managed in suspension but we understand that being unable to deal during this time is very frustrating for our customers. In recognition of this inability for customers to access their investment, M&G is waiving 30% of its annual charge until the Funds closes. In addition, effective from the date of the suspension, no charges will be applied to any cash that is held within the Funds’ portfolios.
Will the funds continue to distribute income?
Yes. The Funds will continue to make income distributions.
What will happen to income reinvested distributions?
As the Funds are suspended, it’s not possible to use your income to purchase new Shares/Units in either Fund, so the income will be paid out to you. This will be via cheque unless we have verified your bank account details for previous income or withdrawal payments.
Will income still automatically be reinvested for accumulation shares?
In practice, yes. Income received for Accumulation Shares is not paid out but is reflected in the value of your holding by including it in the price of Accumulation Shares.
Will the suspension affect the financial statements for the Funds?
No. We will continue to produce financial statements as normal, including extra detail on the suspension.
Will you be issuing valuations while the Funds are suspended?
Yes. The latest share prices enable you to calculate the value of your holding and can be found on our website. M&G investors can register for or log in to My Account for a valuation and myM&G investors can log in to their account for a valuation.
Does the suspension affect any other M&G funds?
No. There are no other M&G funds affected by the suspension.
What will happen to my regular Direct Debits to the M&G Property Portfolio?
For M&G investors (ISA, Junior ISA and/or Savings Plan) and myM&G investors holding a GIA account, we will stop collecting Direct Debits for investments into the suspended fund. If you are an investor in multiple funds, then collections will be made for investment into funds unaffected by suspension activity. You can make amendments to your Direct Debit Instruction, such as adding or changing funds, at any time by calling our Customer Relations team on 0800 390 390 or download the relevant Direct Debit form.
MyM&G customers can manage their Direct Debit Instructions from their Dashboard.
For myM&G investors holding an ISA/Junior ISA account, we will continue to collect the full Direct Debit amount, but the amount allocated for investment into the suspended fund will be held in your Cash Park. If you are an investor in multiple funds, then collections will be made for investment into funds unaffected by suspension activity.
Will stock transfer instructions be permitted?
Any valid instructions to transfer ownership of Shares of these Funds will be processed as normal during the suspension period.
What if I want to change my mind regarding my closure instruction (not applicable to myM&G)?
If you change your mind and want to provide alternative instructions at any point in the closure process, please complete the relevant form and return to us via one of the methods in the closure documentation.