Property fund cash levels drop as managers put inflows to work

Property managers have begun putting their funds' high cash positions into the market following a surge of inflows into the sector.

Last year, some of the biggest property funds in the market saw their cash weightings surpass 20% following rapid inflows, and managers struggled to invest cash quickly. The illiquid nature of property means new purchases can take time to complete, potentially causing a ‘cash drag' on portfolios. At the height of its popularity last May, Property was the top-selling IA sector, attracting £491m in net inflows. The latest sales figures show inflows had halved to stand at £235m during January, but property was still the best-selling asset class and the second best-selling sector for that mo...