Real Estate

M&G’s fund freeze is another liquidity warning for the industry

The funds market already has an ideal structure for illiquid investments; it is a wonder it is not more popular

M&G’s fund freeze is another liquidity warning for the industry
Photo: Getty Images

Are the regulators asleep? Has the industry learned nothing? The news that M&G has locked up investors in its £2.5bn M&G Property Portfolio commercial property fund has prompted predictable cries of outrage.

But are they justified? The first question is whether investors were aware of the risk that the open-ended fund might be gated if it suffered the sort of rush of withdrawals seen in the last few months.

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