Property funds shed £1.4bn while sentiment reversal sees global bonds in top spot

IA stats for June

Laura Dew
clock • 2 min read

Property was the worst-selling sector in June with net retail outflows of £1.4bn, while investors sought safety in bonds, according to the latest statistics from the Investment Association.

This compares to outflows of £367m from property in the previous month, and accounts for some 5.7% of total assets held in these vehicles. In the weeks following Brexit, several open-ended property funds were forced to suspend trading to deal with the high volume of redemptions, as investors worried about the outlook for the asset class in the wake of the vote. Money instead flowed into fixed income and absolute return funds, with Global Bonds seeing inflows of £250m, Targeted Absolute Return taking in £221m and Sterling Corporate Bonds reporting inflows of £114m.  Global bonds wer...

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