M&G offshore Property fund moves to cancellation pricing

M&G has moved its £360m offshore Property fund from creation to cancellation pricing as it has suffered “small but persistent” redemptions.

The Guernsey-domiciled vehicle, managed by Dermot Kiernan, has seen a 5.5% cut in the unit price following the move to cancellation.

The Property fund contains more institutional than retail money, and consequently is more prone to ‘lumpy' inflows and outflows.

It will remain at cancellation pricing until the pattern of withdrawals returns to normal, according to M&G.

Over the three years to 31 August, the fund fell 34.4% against a Property - Europe sector average fall of 28.1%.

The £1.6bn onshore offering, the Property portfolio, managed by Fiona Rowley, contains largely retail money and is still seeing strong net inflows, the group says.