LONDON (Reuters) - British insurer and asset manager M&G (MNG.L) said it was continuing the suspension of a 2.5 billion pound property fund, although it was making good progress in selling some of the fund’s assets.
M&G suspended the fund in early December, after Brexit-related market uncertainty and weakness in the UK commercial retail property sector drove many investors to ask for their money back.
The firm said sales and planned sales of retail assets would reduce the fund’s exposure to the sector to 32% from 38%.
It said 245 million pounds of assets were in solicitors’ hands or under offer, and sales would increase the fund’s cash position to 16% from 4.8%.
Other similar UK property funds have remained open, with many saying they were holding larger cash buffers.
Reporting by Carolyn Cohn; editing by Simon Jessop