M&G and Aviva latest to block trading in property funds

Aviva and M&G have halted trading in property funds. Picture: Andrew Matthews/PA Wire

Aviva and M&G have halted trading in property funds. Picture: Andrew Matthews/PA Wire

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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.

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“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.

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