Outflow from UK property funds slows in January

A total of £77 mln (EUR 102 mln) was withdrawn from private investor property funds in the UK during January, significantly down on the £242 mln withdrawn in December.

Statistics published by the Investment Management Association (IMA) indicated that funds under management of UK-domiciled investment funds totalled £433 bn in January, down 7% from December and 3% lower than January last year.

IMA said there were 550 mln worth of net retail outflows. Equities experienced the largest outflows of £867 mln. Property funds - which are included in the equities section - performed better and saw the flood of outflows in the latter part of 2007 reduced significantly.

IMA chief executive Richard Saunders said: 'January saw a continuation of the outflows experienced in the last two months of 2007. While it is traditionally a slower month in the run-up to the ISA season - which many are predicting will be a quiet one - broader market conditions have exacerbated this. January's outflows were concentrated in equity funds, with property fund outflows down to about half the levels of November and December.'

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