On 21^st October 2016, M&G Investments (M&G) announced that it intends to lift the temporary suspension in the trading of shares in the M&G Property Portfolio and the M&G Feeder of Property Portfolio. 

From midday on 4^th November 2016:

• Investors will be able to buy, sell or switch investments in both funds. 
• All sell and buy orders placed with M&G during the period of suspension will be processed on 4^th November 2016.

This suspension was originally put in place on 4^th July 2016 - see our bulletin of 6^th July 2016.  M&G has also advised that the fair value adjustment that was put in place on 1^st July 2016 has been removed in full.

The suspension has enabled the manager to sell properties in the portfolio in an orderly fashion.  M&G has indicated that 58 properties have been sold, exchanged or placed under offer, for a total consideration of £718m.  Prices achieved were between 3%-4% lower than pre-referendum values.  Through these portfolio adjustments, the manager has tilted the portfolio towards higher quality assets, taking the opportunity to sell some of the lesser quality assets in sectors that she believes have weaker medium-term fundamentals.

The fund’s cash holding represented 13.2% of the portfolio, as at 19^th October 2016.  The manager will aim to maintain cash levels at around 15% in the near term, higher than the usual 7.5% - 12.5% range.

As well as raising cash for the portfolio, M&G has also been seeking evidence of more stability in the market and improved liquidity, as well as signs that investor selling pressure has abated, before lifting the suspension.  The firm is now satisfied that these conditions have been met and therefore that it is in the best interests of its clients to lift the suspension.

The fund continues to feature on our Recommended list.