M&G has announced the launch of the M&G Property Portfolio on November 8.
The fund will be managed by M&G drawing on the resources and expertise of Prudential Property Investment Managers.
Gary Shaughnessy, chief executive of M&G Securities, says: “Our aim was to launch an innovative retail commercial property fund which combines PruPIMs extensive property experience with M&Gs sales and marketing expertise. What makes this fund different is that it has scale from day one and is designed to be 100% fully invested in bricks and mortar.
“Investing directly in commercial property offers the opportunity for consistent, long term returns for investors seeking both income and capital growth, with an added benefit of substantially reducing portfolio risk.”
The M&G Property Portfolio is a unit trust with a large well-diversified portfolio of 400m, with over 60 UK commercial properties spread across all key sectors.
John Cartwright, manager of the M&G Property Portfolio, says: “For years, pension funds have enjoyed the consistent returns that commercial property can deliver. Many investors are now beginning to realise its importance as a core asset class, alongside equities and bonds. Returns from commercial property are more stable than other assets and not once over the past decade have they shown a negative return. This is a record no other asset class can compete with.”
The M&G Property Portfolio will be available to investors at an initial charge of 5% and an annual management charge of 1.5%, with a minimum initial investment of 1,000 for lump sum payments.