Michael Wood has been appointed manager of the £824mn M&G Property Portfolio fund.
Wood will take over from Justin Upton, who will leave at the end of the year for another role in the industry.
The incoming manager joined the company 15 years ago and has been working on the property fund since then, as an investment manager.
Head of M&G Real Estate, Tony Brown, said: “Michael is a seasoned investor with deep knowledge across all property sectors.
“His involvement in the fund since 2007, his experience and long standing relationships with the investment team make him ideally placed to provide continuity and leadership.
“Justin leaves with our thanks for his contribution and our very best wishes for the future.”
Wood’s appointment comes at a tricky time for open-ended property funds, as there has not yet been any solution created to the liquidity mismatch that has caused sustained outflows from the sector.
Since April 2017, £5bn has flowed out of the sector, according to data from Morningstar.
Former Bank of England governor Mark Carney famously said funds which invest in illiquid assets but offer daily dealing were "built on a lie".
Waves of redemptions
The issues began after the Brexit vote in 2016, when the funds rushed to gate for redemptions amid concerns over valuations.
Then again in 2020 the pandemic left the fund managers with no choice but to suspend the funds again, after most independent valuers said the market conditions left it impossible to value the makeup of the portfolios.
In May last year Aviva Investors closed its UK property fund over concerns that it had become increasingly challenging to generate positive returns while also retaining enough liquidity to re-open the fund, which remained gated since the start of the pandemic.
The next month Aegon also closed its property fund, citing similar issues.
sally.hickey@ft.com
