Thawing Out

M&G became the latest fund manager to reopen its retail funds, the M&G Property Portfolio and its feeder fund, having sold 58 properties for £718m, at an average discount of 3.5% to pre-referendum pricing. The £4.1bn fund will reopen on 4 November after having concluded an estimated £240m of further sales, raising cash holdings to almost 20%.  Whilst warning of potentially further weakness to come, the fund manager cites, “the falling value of the UK pound, which has made purchases cheaper for overseas buyers in their local currency” as a contributing factor to market recovery. M&G’s strategy included “the sale of good secondary assets to increase the proportion of prime assets”.