New Star Asset Management said that net outflows in its UK Property Unit Trust were being ‘more than offset’ by inflows into its recently launched International Property Unit Trust.
In a trading update today, the fund manager said that assets under management in
The International Property Unit Trust raised a record £206m at its launch in June.
New Star recently switched the pricing basis on its UK Property Unit Trust from ‘offer’ to ‘bid’, following several days of net outflows by retail investors. Four other
The move was seen as an effort to discourage retail investors from selling their units in the funds, as they would be exiting at a lower price than they originally paid.
“The adoption of a bid basis is normal practice in the
New Star said the difference between the offer and bid prices for the UK Property Unit Trust was approximately 4.1% and reflected the transaction costs of buying and selling property.
“Since 6 July there have been limited outflows from the UK Property Unit Trust and these have been more than offset by inflows into the International Property Unit Trust,” said New Star.
