M&G have joined Standard Life Investments in suspending trading on their £4.7bn and £2.9bn property funds, respectively, as of 12pm on 4th July. In anticipation of liquidity problems, we began reducing our positions in both funds at the start of the year, allowing us to lock in profits and retain a higher cash weighting ahead of the EU referendum. We have, however, retained some ‘tail’ positions in these funds which are backed by some of the biggest fund houses. While we have been informed that it may take up to 6 months to reverse the suspension, we remain confident that these funds will be able to withstand the pressures exerted on this asset class as a result of the widespread contagion caused by the UK vote to leave the EU.