M&G Investments is winding-up its £81m Global Real Estate Securities fund as it is no longer commercially viable.
M&G says it has been reviewing the fund after Gillian Tiltman left the firm in August last year to join Neuberger Berman. The fund managed £135m of assets on 31 July 2014 but this slumped to just £88m in January this year.
M&G chief executive of equities Gary Cotton says: “The M&G Global Real Estate Securities fund has failed to attract the level of interest we expected from external investors. Gillian’s departure triggered outflows so it has become increasingly difficult to manage the fund in a cost-effective way.”
M&G says the fund will close on 22 May. Investors can either redeem their shares for cash or switch their holdings to an alternative M&G fund.