UK retail investors have plunged £3.6bn into commercial property funds over the past year, prompting brokers to urge caution over the sector.
The sector has now become the UK’s best selling asset class, but brokers have warned of potential liquidity limits and high fund costs.
In performance terms the sector has had a strong year, making total returns of 11.7%, against 8.3% for corporate bonds and 6% for UK equities. The sector now has £23bn of investors money under management, up from £17.4bn at the start of 2014.
FT Weekend, FT Money, 4
