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.