M&G Property Portfolio and M&G Feeder of Property Portfolio suspend trading

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Aegon Retirement Choices (ARC) and Aegon Platform update

On 4 December 2019, the M&G Property Portfolio and M&G Feeder of Property Portfolio suspended trading until further notice.

These funds are Open Ended Investment Companies (OEICs) offered across our Aegon Retirement Choices (ARC) and Aegon Platforms.

What this means for investors

If you currently invest in either of these funds, from 11am on 4 December 2019 (the last Aegon dealing point), they will be unavailable for selection on your online account and you’ll not be able to buy, sell or transfer units in the funds.

Any switches or payments out of the funds being processed on or after this date will be cancelled. If the funds are part of an instruction for a number of fund switches or withdrawals, then the rest of the instruction will be processed normally, excluding the suspended funds.

Any trades to buy units placed after 11am on 4 December 2019 will be moved into your individual cash account facility and will remain there until you give us a clear instruction to switch into an alternative investment, if you wish to do so. This applies to all regular payments, single payments, switches and transfers into the M&G Property Portfolio and M&G Feeder of Property Portfolio.

Model portfolios

If you hold either of the funds as part of a model portfolio and the portfolio experiences a rebalance, the M&G Property Portfolio and M&G Feeder of Property Portfolio will be excluded and the remaining funds will be rebalanced proportionally.

Regular and single payments into model portfolios can continue, however the portion for the M&G Property Portfolio and M&G Feeder of Property Portfolio will be moved into your individual cash account facility, where it will remain until you give us a clear instruction to switch into an alternative investment, if you wish to do so.

Dividend income

If you’re currently receiving income from your product in the form of dividends, these will continue as normal if either fund pays any while suspended.

Regular withdrawals

If you’re currently taking regular withdrawals from your account, only hold either of the two funds, and there is no cash in the cash facility to cover withdrawals, these withdrawals will have to stop until the fund suspension is lifted.

Where you are taking regular withdrawals and there are other funds in your account, we will continue to sell down the largest fund to meet these withdrawals unless other sell down methods have been set up.

 Why this happened

The M&G Property Portfolio and M&G Feeder of Property Portfolio are currently experiencing a high number of sellers seeking to cash in their fund holdings.

This is due partly to higher levels of uncertainty in the UK commercial property market due to ongoing negotiations around Brexit.

However, it takes time for the fund manager to sell properties in order to raise cash levels within the fund to meet redemptions. As a result, M&G Investments took the decision to suspend trading in the M&G Property Portfolio and M&G Feeder of Property Portfolio.

M&G Investments believes the best way to protect investors remaining in the funds is to immediately suspend trading. This will allow the fund manager time to manage cash levels in a controlled manner.

Find out more

We recognise that this may be a concern for you so if you have any questions regarding how the above affects your portfolio, you should contact your financial adviser in the first instance.

Alternatively, for Aegon Retirement Choices (ARC) investors please contact us at clientservices@aegon-arc.co.uk or call us on 0345 680 1234.

For Aegon Platform investors, please contact us at aegoncofundsadministration@aegon.co.uk or call us on 0345 604 4001. 

If you have any further questions about the fund suspension, you can also contact M&G's Customer Relations team direct on 0800 390 390.

Please note, call charges may vary. If you’re contacting us by email please remember not to send any personal, financial or banking information because email isn’t a secure method of communication.

Please be aware that we do not offer investment advice.