Dealing prices

M&G Property Portfolio

Each day we value the assets of the M&G Property Portfolio on both an ‘offer’ basis (how much they would cost to buy) and a ‘bid’ basis (how much the fund would receive if they were sold). The difference between the two, known as the ‘spread’, is currently 5.79% (as at 1.12.16) of the ‘offer’ basis valuation. This reflects the costs of buying and selling properties, in particular Stamp Duty Land Tax paid on purchases which can account for up to 5% of the property value. The dealing prices we publish are on either the offer basis or bid basis, depending on whether people are generally buying fund shares (the fund is in ‘net inflow’) or selling shares (the fund is in ‘net outflow’). Should fund flows move from net inflow to net outflow, the dealing prices may ‘swing’ from an offer basis to a bid basis and fall by the extent of the spread. On the other hand, should flows move from net outflow to net inflow, the dealing prices may rise by a slightly greater percentage, the spread being based in this case on the lower ‘bid’ basis valuation. For large deals (regarded as deals in excess of £50,000) the dealing price you receive may be different from the published price. If you are buying shares, you may receive a price that is higher than the quoted offer price. If you are selling shares, you may receive a price that is lower than the quoted bid price.

M&G Feeder of Property Portfolio

Investors should note that the dealing prices of the M&G Property Portfolio, in which the M&G Feeder of Property Portfolio is invested, may ‘swing’ to the extent of the ‘spread’ reflecting the costs of buying and selling properties, currently 5.79% (as at 1.12.16) of the ‘offer’ basis valuation. Please see the fund page of the M&G Property Portfolio for details.

 

For more information about the pricing of the M&G Property Portfolio please contact our Investment Sales Team on 0345 600 4125. Lines are open Monday to Friday, 9.00am to 5.00pm. Calls cost 5p per minute, plus your phone company's access charge. For your protection calls may be recorded or monitored.

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The value of investments will fluctuate, which will cause fund prices to fall as well as rise and investors may not get back the original amount invested. 
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