• 09 December 2019

    Suspension of M&G property fund – December 2019

    M&G Investments (M&G) has announced that it has suspended trading in the M&G Property Portfolio fund. As the Phoenix Wealth funds shown below invest in this fund, no transactions can be made in the Phoenix Wealth funds until the suspension is lifted. There is also an impact on self-invested policies investing directly in the M&G fund.

    Which funds are affected?

    • Phoenix Wealth M&G Property Portfolio fund (temporarily suspended)
    • Phoenix Wealth M&G Property Portfolio fund S3 (temporarily suspended)
    • Phoenix Wealth M&G Property Portfolio fund S4 (temporarily suspended)
    • And the M&G Property Portfolio fund itself, available through a self-invested policy

    Why is this happening?

    The M&G Property Portfolio fund invests mainly in physical assets, such as buildings and land. In much the same way as selling residential property can take time, it can take time to sell commercial property. It’s important to get the best price for a property and therefore the best deal for investors in the fund.

    When the number of requests to take money out or switch to another fund exceeds the rate at which properties can be sold at a favourable price for investors, M&G can decide to introduce a delay period. This allows properties to be sold in a controlled way and is generally considered to be in the best interests of both those who wish to leave the fund and those who wish to stay in it.

    What does this mean for customers invested in one of these funds?

    • The fund suspension means that customers are currently unable to pay into, or make withdrawals from the fund until it starts dealing again.
    • If customers have any ongoing transactions that are impacted by this suspension, we’ll let you know what action they can take. If customers don’t have an adviser, we’ll contact them directly.
    • M&G is decreasing the annual management charge on its fund by 30% during suspension and as a result we will pass these savings on.

    We will continue to update our website when we receive further information. If you have a policy query, please call us on 0345 129 9993. We're here from 8.30am to 5.30pm, Monday to Friday.

    You can find more information on this suspension, and the latest updates, on the M&G website.