Multi-managers are becoming increasingly wary of open-ended property vehicles, warning many funds are struggling to put to work the recent influx of cash into the sector.
Property was the top selling IMA sector for the second month running in November, with the £417m net retail inflow the highest recorded since £467m in March 2007. However, the sharp inflow has prompted a number of multi-managers to be concerned about how quickly these funds can invest the money - leading them down the closed-ended route. "While property funds saw large redemptions to April last year, they now have to deal with the difficulty of investing fast-growing cash levels, inflated by the sudden surge of new inflows," OPM business development manager Richard Carswell says. "...
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