LONDON (Reuters) - UK property funds saw a record 2.2 billion pounds withdrawn during 2019, investment funds transaction network Calastone said on Tuesday, equivalent to one in every 15 pounds of assets under management.
Property funds were hit by outflows in the later part of the year linked to weakening sentiment tied to Britain’s exit of the European Union, which in turn led M&G (MNG.L) to prevent investors from leaving its UK property funds.
After many months during which the UK’s equity market lagged rivals, again linked to Brexit uncertainty, UK equity funds posted record inflows in December, during which the centre-right Conservative party won a landslide election.
The victory helped give certainty that the country would leave the EU in January and unlocked investments from many who had been stuck on the sidelines. In total, more than 1 billion pounds was invested in the funds during December, it said.
Reporting by Simon Jessop; editing by Carolyn Cohn