5th Jul 2016 18:29
LONDON (Alliance News) - Prudential PLC's M&G Investments on Tuesday became the third fund manager to suspend trading in one of its property funds following a surge in redemptions as the UK's vote to leave the European Union drives uncertainty in the commercial property sector.
The suspension by M&G follows suspensions to trading in property funds run by Standard Life Investments, the investment management arm of FTSE 100-listed Standard Life PLC, and by Aviva Investor, the funds arm of Aviva PLC.
M&G said investor redemptions in the M&G Property Portfolio have "risen markedly" due to the high levels of uncertainty in the UK commercial property market since the outcome of the EU referendum.
"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," it said.
"This will allow the fund manager time to raise cash levels in a controlled manner, ensuring
that any asset disposals are achieved at reasonable values," M&G added.
Shares in commercial property investors sunk in London on Monday and Tuesday following broker downgrades which raised concerns about the outlook for the sector after the Brexit vote.
By Sam Unsted; [email protected]; @SamUAtAlliance
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