4 March 2015 - M&G Investments has announced that the £81 million* Global Real Estate fund will be wound-up on 22nd May 2015.
Following the departure of the fund manager, Gillian Tiltman, in August last year , and a review into the fund, M&G have decided that it is not commercially viable for them to continue running this fund and therefore closing it is in the interests of existing fund shareholders.
Gary Cotton, chief executive of equities at M&G said: “The fund has failed to attract the level of interest we had expected and, coupled with Gillian’s departure, which triggered some investors to sell their holdings, it has become increasingly difficult to manage the fund in a cost-effective way.”
Shareholders have the option of either redeeming their shares for cash or switching their holding to another M&G fund free of charge. Chelsea customers can also switch to any another fund in FundStore free of charge.
There are three M&G funds on the Chelsea Selection: M&G Optimal Income, M&G Global Emerging Markets and M&G Global Dividend. However, please note that these funds invest in very different companies and assets from the Global Real Estate Securities fund.
If you wish to invest in a similar fund, you may like to consider the F&C Real Estate Securities, Premier Pan European Property or Schroder Global Property Securities, which are also on the Chelsea Selection.
*As at end of February 2015