M&G to convert property fund to paif structure
M&G is to convert its £1.9bn Property Portfolio fund into a property authorised investment fund (paif) next year.
A spokesman for the company said it was in the process of planning the conversion of the fund, which has been run by Fiona Rowley since 2007.
Paifs are widely seen as a favourable structure for property funds as they do not attract corporation tax under HMRC rules.
Platforms have came under pressure early last year to adjust their systems to cope with the paif structure, but the take up has been slow from providers. The M&G spokesman said platforms faced an “operational challenge” to offer paifs as the products require platforms to be able to stream income.
Royal London converted an institutional property fund to a paif in May 2010, while Hearthstone Investments launched a residential paif in May 2012.