Reopened property funds shed £166m amid record month for UK funds industry
L&G UK Property fund assets fall £500m in the six weeks after it lifted its seven-month suspension
Property was one of the only asset classes to suffer outflows amid a record month for UK-domiciled funds in November, as a decisive US election and positive vaccine trial data buoyed investor confidence.
In total, the UK funds industry raked in £8.3bn during the month, smashing the previous record of £5.7bn in September 2017, according to the latest Investment Association figures. Equity funds took in £4.1bn, mixed asset brought in £2.3bn and fixed income drew in £1.2bn.
ASI could set an M&A trend in deal with investment trust specialist
‘An open-ended equivalent wouldn’t have been anywhere near as attractive’
A raft of liquidity mismatch problems faced by open-ended funds and the increasing popularity of real assets and alternatives could prompt more asset managers to follow in Aberdeen Standard Investments’ footsteps with its stake in investment trust specialist Tritax.
ASI said it wanted to “evolve” its property offering when it this month announced its acquisition of 60% of logistics specialist Tritax, best known to UK investors for its £3.7bn Tritax Big Box Reit and £549.6m Tritax Eurobox investment trust.