The UK’s 51 largest fund managers added just £4.3bn to the value of their UK assets in the year to June as capital value growth stagnated and inflows dwindled.
This 2.8% increase pushed assets under management up to £156.3bn, according to data compiled exclusively for EG by Property Funds Research.
Figures from the Association of Real Estate Funds show that net inflows were just £994m during the period – a huge drop from the previous 12 months when net inflows were £5.8bn – the most recorded since 1998.
The increase in UK assets under management (AUM) is only marginally ahead of a 2% rise in capital values, recorded by the IPD over the same period.
Aviva retained its position at the top of the table for the eighth year in a row, weighing in with £19.7bn of UK property assets at the end of June – an 8% increase on the previous year.
Scottish Widows Investment Partnership leaped into the top five on the back of 50% growth in its AUM. This came after the Lloyds-owned business took control of £2.4bn of the bank’s mandates, which were formerly managed by Invista Real Estate Investment Management.
The figures were released in the same week as uncertainty over the future of another former Invista fund – the listed Foundation Property Trust – ended.
On Monday, Picton Property Investment Trust walked away from a potential takeover of the £332m fund, clearing the way for Schroders to take over management of the vehicle.
Following an “extremely thorough due diligence process”, the trust’s board concluded that “it was not minded to recommend” Picton’s indicative offer.
It added: “Certain specific factors, such as refinancing risk, did not represent sufficiently compelling terms for us to recommend this merger to our shareholders at this time.”
Former Invista chief executive Duncan Owen is expected to join Schroders as part of the deal.
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