You are here: Home - Investing - Experienced Investor - News -

Investors pull £150m from UK property sector

0
Written by: Paloma Kubiak
09/01/2020
Spooked investors pulled £149m from Direct UK property funds in November 2019, latest fund flow data from The Investment Association reveals.

Outflows for the sector were recorded every month in the year to November 2019, taking the total pulled from UK property funds to £1.85bn.

However, following the suspension of the £2.5bn M&G Property Portfolio fund in December, this figure is likely to be much higher once The IA releases further data.

Indeed, data from global funds network Calastone published earlier this week, revealed that December saw outflows of £314m from UK property funds in the wake of M&G’s pause on dealings.

This was the second-worst month on record with 2019 seeing a record £2.2bn withdrawn from the sector. That’s the equivalent to £1 for every £15 under management.

By contrast, UK equity funds had a rare month of inflows in November, with £108m committed, according to The IA.

Laura Suter, personal finance analyst at investment platform AJ Bell, said: “Despite the inflows in November, investors on the whole have pulled almost £3bn from UK funds in the 12 months to the end of November. Considering the FTSE 100 finished 2019 up more than 17% and the FTSE 250 rose 29% during the year, these investors may be regretting that move now, with the benefit of hindsight.”

Suter added that one trend that’s likely to continue well into the new decade is the mass outpouring of assets from the Absolute Return sector.

“There’s been consistent, meaty outflows from the funds since July 2018 and November saw the highest outflows since the start of 2019, with £656m pulled. Outflows since July 2018 now total almost £7.5bn – meaning that £1 for every £11 invested has been withdrawn during that period,” she said.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Regulator investigates whether Utilita overcharged meter users

The energy regulator is investigating whether Utilita charged prepayment meter customers above a price cap.

Close