Asset managers M&G Investments and Aviva Investors yesterday temporarily suspended trading in property funds after investors moved to pull out of UK commercial property following the Brexit vote.
It followed a similar move by Edinburgh-based Standard Life on Monday. In a statement, M&G said it had enforced the temporary suspension of trading in the shares of the M&G Property Portfolio and its feeder fund.
“Investor redemptions in the fund have risen markedly because of the high levels of uncertainty in the UK commercial property market since the outcome of the European Union referendum,” M&G said.
“Redemptions have now reached a point where M&G believes it can best protect the interests of the funds’ shareholders by seeking a temporary suspension in trading.”
The M&G Property Portfolio fund has £4.4 billion of managed assets and invests in 178 commercial properties across the UK.