Following our decision in July to suspend all recommended ratings on funds directly investing in commercial property in the aftermath of the Brexit vote, we have continued to monitor the situation closely. Having seen an easing of market conditions, we took the view to lift our blanket suspension and reverted back to our normal practice of considering recommendations on an individual fund basis.

The M&G Property Portfolio re-opened on the 4th November and although the group reported that outflows were seen in the days immediately following the re-opening, daily net flows quickly moderated thereafter. Over the coming months, the manager, Fiona Rowley, intends to run the fund with a cash position in the region of 15% (ordinarily cash is run at the 7.5%-12.5% level). We consider this a sensible strategy for the time being as it allows a healthy level of liquidity in order to meet any further potentially large redemptions.

As a result of the successful re-opening of the fund, we are pleased to announce the re-instatement of the fund's recommended rating.