if there is a downturn in the market and investors need money to come out of the fund then they need to be aware that in the past M&G have restricted flows out of the fund
An alternative or complement to fixed interest is property investment. The challenge is the reputation following 2008 when many property funds delayed payments to investors wanting to withdraw money. For many this makes them nervous of investing in pure bricks and mortar property funds.
M&G were one of the managers who were forced to lock investors’ money into its fund for 90 days whilst it carried out an emergency sale of property.
Performance over the last five years has been good vs the sector and the iShares Developed Markets Property ETF. In this update we talked to the manager about her view of the market, where they are finding value and what will drive returns going forward.