We are temporarily unable to accept any new investments into, or new withdrawals from, Prudential's property funds that invest in the M&G Property Portfolio or the Aviva Property Trust.
The suspension is to protect all investors in the Prudential funds and is a direct result of M&G Investments suspending trading in shares of the M&G Property Portfolio, and Aviva Investors suspending trading in its Property Trust.
The suspension applies to any transaction that is in progress but not completed, both for new business and servicing, on the funds listed.
The commercial property market has experienced considerable volatility over recent months. However, the long-term rationale for holding UK Real Estate assets as part of a diversified investment portfolio is sound.
Commercial property should be regarded as a long-term investment and we believe the sector continues to offer potentially attractive returns for investors who are willing to look beyond the current uncertainty and take a long-term view.
At the moment we are unable to say how long the property funds will remain suspended but we are monitoring the situation closely while continuing to work hard on behalf of our customers. We will reconsider our position as soon as the suspensions in the M&G Property Portfolio and Aviva Property Trust have been lifted.
Prudential is a financially strong company. Our multi-asset fund ranges - both unit-linked and with-profits including the PruFund range of funds - are not suspended and continue to trade as normal. In addition, our multi-asset funds typically diversify their investments internationally, as well as by different asset type, so that the impact of the value of Sterling is more manageable.
For information on how this impacts your clients, please read our Q&A document on the suspension of all activity relating to property funds.