Fund groups pull UK property fund marketing as flow surge continues

Fund groups are scaling back marketing activities relating to their UK property funds as they fight the tide of continual inflows into the sector.

Property funds have seen a stream of inflows over the past 18 months as income investors seek alternatives to poor returns on bond investments (see chart). Latest Investment Association figures show its Property sector was the third most popular with investors in April, taking in a net £265m. But as funds swell in size and managers struggle to deploy assets, portfolios have been forced to take action as cash weightings rise to double-digit levels - in some cases above the 20% mark. Some of these weightings have been falling in recent months, but the slow nature of property investm...