Outflows from UK real estate funds slowed for a third month in January.
Investors sold £139m of real estate holdings over the start of 2020, according to the latest Fund Flow Index from investment network Calastone. It was the lowest monthly outflow since the Covid-19 pandemic began, excluding months in which most funds were suspended.
Edward Glyn, head of global markets at Calastone, said: “Real estate funds are more diverse than just UK city-centre shops and offices – they have assets across a range of sectors, some of which are doing very well in the pandemic, such as warehousing, and across a range of geographies. Although sentiment is still negative, the slowdown in outflows is mainly because investors who wanted to sell but were frustrated by fund suspensions, have now largely been shaken out.”
Elsewhere in Calastone’s report, outflows from UK equities funds grew to £179m, the eighth consecutive month in which investors have sold out of the asset class. Equity income funds had their second-worst month on record.
ESG equity funds, index funds and bond funds all posted monthly inflows.
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