UK retail investors pile into property

Property funds attracted a net £373m from investors over the month, according to figures from theInvestment Management Association. The next most popular asset classes were strategic bond funds denominated in sterling, which pulled in £284m, and global bond funds, which took £277m.

Both retail and institutional investors have piled substantial amounts into property funds since late last year, and open-ended funds are operating at high cash levels as a result.

Earlier this month, research by Financial News found that at the end of January, the £1.9bn Scottish Widows Investment Partnership Property Trust had 37% of its assets in cash, the £1.7bn Aviva Investors Property Trust had 31%, and the £291m Henderson New Star International Property fund had 38%, according to the companies’ figures.