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M&G’s European Property Fund raises EUR524 million in first quarter of 2022

M&G’s EUR5 billion European Property Fund (the Fund) managed by David Jackson and Simon Ellis has won record inflows of EUR524 million between January and March this year – the largest amount raised in a single quarter in the Fund’s 15-year history. The capital comes from three new and four existing clients in Europe and Asia.

A combination of the Fund’s international investor base, long term performance and the track record of its management team all contributed to the Fund’s selection and further increase its international client base as European investors diversify away from domestic markets to seek returns further afield.

Having marked its 15-year anniversary deploying more than EUR800 million in Continental Europe last year, the M&G European Property Fund continues to reinforce its leadership position as one of the largest and most diversified European property portfolios backed by expanding teams in 8 markets. The Fund also received its highest ever GRESB (Global ESG Benchmark for Real Assets) rating in 2021 as the growing influence on ESG issues on major European property funds has refocused attention on quality, with sustainability under ever closer scrutiny from pension fund clients, as Dutch pension fund adviser, Wietse de Vries at Almazara, explains:

“Over the years we have advised a number of Dutch pension fund clients to invest in the M&G European Property Fund. Aside from a well-diversified, well performing portfolio managed by a highly qualified team, it is important for us to see the managers’ commitment to reduce GHG emissions and arrive at a Paris-proof portfolio by 2050.”

A diversified investment strategy and a bias towards high quality assets in Western and Northern Europe has enabled the Fund’s managers to weather major international events such as the Global Financial Crisis, Brexit and the COVID-19 pandemic whilst maintaining returns for investors in more than 20 different jurisdictions. The Fund has outperformed INREV’s Open End Diversified Core Equity Fund Index and MSCI’s Pan European Property Funds Index (Balanced Funds) over 3, 5, 10 and 15-year periods.

Source: global.mandg.com on the 28th of April