UK real estate funds saw their lowest level of outflows since 2018 over the course of last year – a tentative sign of recovery even in a fourth consecutive year of investors pulling their money.
Calastone, a fund transfer network, tracked net outflows of £535m in 2022, a quarter of 2021’s £2.14bn. Sell orders fell by 58% year-on-year, while buy orders were up by 12%.
June and July saw net inflows, but outflows began again over the summer, peaking in October in the aftermath of the government’s so-called mini-Budget.
Edward Glyn, head of global markets at Calastone, said: “The slowdown in outflows at the end of the year reflects relief that the mini-Budget was swiftly abandoned, as well as calmer conditions in global asset markets. Sentiment has improved markedly, but there is enormous uncertainty over the future course of interest rates and economic growth in the UK and around the world, and we may yet see the bear roar again before the bull market cycle can begin anew.”
This week, BlackRock has deferred redemptions from its £3.5bn UK property fund.
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