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What's happened with the M&G Property Portfolio?

The M&G Property Portfolio Fund was suspended on 19 October 2023. In December 2023 the Financial Conduct Authority (FCA) granted approval to M&G Investments to start the wind up (closure) process for the M&G Property Portfolio fund. M&G Investments expect it to take around 18 months (from original date of suspension) to sell the properties in the fund and fully distribute the proceeds to unitholders in their fund.

Property funds have been less popular with investors over the last few years. Investors have sold their holdings, and the Funds are smaller. M&G Investments believes that withdrawals from the funds are likely to continue, and there is a risk this may accelerate in the future. As the funds reduce in size, it becomes necessary for the fund manager to sell some of the fund’s larger properties and buy smaller ones. Doing this will incur high transaction costs which will negatively impact the performance of the funds.

M&G Investments believes that the funds will continue to reduce in size, and after considering a number of options, they've decided that it's in the best interests of investors to close the funds as soon as practicable to allow for an orderly disposal of the funds’ assets and return the proceeds to investors.

The following funds on Retirement Account are impacted:

GB00B7SX7S61

M&G Feeder of Property Portfolio Sterling I Acc

GB00B842HT59

M&G Feeder of Property Portfolio Sterling I Inc

No dealing in the M&G Property Portfolio is allowed during the wind-up process.

M&G Investments will make a series of distributions to investors during the wind up process:

  • The first capital repayment was made in February 2024, when M&G investments distributed £91.5m, representing approximately 17% of the value of the shareholdings as of 2 February 2024. Payments were credited to Retirement Account Cash Accounts on 13 February 2024.
  • A second capital repayment was made in May 2024, returning £50 million, representing approximately 12.5% of the value of shareholdings as of 1 May 2024. Payments were credited to Retirement Account Cash Accounts on 16 May 2024. 
  • A third capital payment was made in September 2024, returning £46 million, which represents approximately 13.5% of the value of the shareholdings as at 4 September 2024. Payments were credited to Retirement Account Cash Accounts on 17 September 2024.

The M&G property Portfolio continues to be priced daily and the unit price will continue to be published on our website.

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"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at 5 Central Way, Kildean Business Park, Stirling, FK8 1FT. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company Limited. The Prudential Assurance Company Limited and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc which is a holding company registered in England and Wales with registered number 11444019 and registered office at 10 Fenchurch Avenue, London EC3M 5AG, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.