Asia

UK investors pull out of property funds

Movement follows UK's referendum to leave the European Union

UK retail investors are pulling out of property and UK equity funds and switching into global and Japanese equities, according to an analysis by rplan.co.uk.

Its data show that the number of trades on the rplan.co.uk platform was up by 175% over the weekend following the referendum vote, and that 76% of withdrawals were from property funds and 22% from UK equity funds.

The most popular sectors included global equities at 56% and Japanese equities at 20%.

Chief investment officer Stuart Dyer said: “UK investors’ fears about the prospects for property are striking. There are worries that property would be affected by a possible economic downturn and the withdrawal of foreign investors.

“But investors should not be too hasty in making decisions about the consequences of Brexit. Property and other asset classes have their roles to play in a balanced portfolio invested for the long term. Diversification helps to reduce the impact of volatility and risk.”

The level of new investments in UK funds on the rplan.co.uk platform were down by 63% over the past month and down 46% over the past three months compared with the same periods last year.

However, the levels of new investments into cash are up a staggering 408% in the past three months and up by 411% in the past six compared with the same periods last year.

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