(Reuters) – M&G’s <MNG.L> life and pensions arm said it has suspended a 164 million pound property fund, days after the British fund manager froze dealing in its 2.5 billion pound flagship UK property fund.
The ban impacts the Prudential M&G Property Portfolio Fund, a fund fully invested in M&G’s Property Portfolio which was suspended on Dec. 4, an M&G spokesman said in an emailed statement on Saturday.
M&G suspended dealing in its flagship UK property fund on Wednesday, blaming Brexit uncertainty and weakness in the retail sector for a surge in investor requests to cash out.
“Due to our change in strategy as well as economic and political uncertainty, the cloud hanging over traditional retail, we actively took the decision to reduce our exposure in our funds to all forms of property investment,” the statement said.
The suspension does not impact PruFund Growth, PruFund Cautious or the Risk Managed PruFund range of funds as they do not invest in M&G Property, the spokesman said.
The company will continue to allow withdrawals linked to retirement benefits, he added.
M&G completed its demerger from Prudential plc to form a separate business M&G plc on Oct. 21.
M&G plc has the right to use the brand name Prudential for life and pensions in UK and Europe, and M&G Investments globally.
(Reporting by Bhargav Acharya in Bengaluru and Carolyn Cohn in London; Editing by Andrew Cawthorne)