Suspension of Prudential M&G Property Portfolio funds
On 19 October 2023 the M&G Property Portfolio (the Fund) was suspended. As a result, from 20 October 2023 we have put some types of payments from, and into, a number of Life and Pensions funds we offer on hold. These funds are linked to the M&G Property Portfolio.
Why have we decided to do this?
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 believe that withdrawals from their M&G Property Portfolio are likely to continue, and there is a risk this may accelerate in the future.
As the fund reduces 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 Fund.
M&G Investments has therefore taken the decision to protect the long term interests of investors by suspending transactions on the M&G Property Portfolio. Doing this enables M&G Investments to get the best price it can for property it is selling within the fund, while it seeks approval from the Financial Conduct Authority (FCA) to wind up the Fund.
As our Prudential M&G Property Portfolio funds invest in the M&G Property Portfolio, we have put payments in and out of these funds on hold, in line with the suspension M&G Investments has put in place.
What restrictions apply
Any existing investment in the Prudential linked funds will still be invested in those funds. However, we cannot accept further investments into the Prudential linked funds, and any requests to move money out will be delayed for six months from the date we receive a request.
Are there any exceptions?
There are exceptions to this – immediate withdrawals will still be allowed for the following:
- Taking retirement benefits from your pension plan
- Existing regular income you’re already taking from your plan
- Any claims on death, critical illness or maturity
- Pension sharing on divorce
Life and Pension funds impacted by the suspension