UK property funds posted net outflows for an eighth consecutive month in March, although the scale of withdrawals was markedly less than in recent months.
According to funds network Calastone, investors pulled £15m from funds during the months, down from a monthly average of £58m over the past eight months
Calastone head of global markets Edward Glyn said: “Property fund flows are less responsive these days to changing market conditions because so many funds have implemented restrictions on the speed and frequency with which investors, especially large ones, can withdraw their capital.
“This is a sensible move that prevents fire sales of prized assets, but it makes it harder to gauge investor sentiment in the short term.”
Glyn continued: “The longer-term picture is clear to see. The current run of outflows has a long pedigree, continuing almost uninterrupted since late 2018, as a series of rate hikes by the Federal Reserve ended the long bull run in financial markets and caused a big slowdown in the world economy.
“The most recent succession of rate rises over the last year, and fears over the resulting economic slowdown, continue to keep pressure on the sector.”
To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews
