Investors run to property exit door

Outflows from UK equity funds slowed in August, with property funds being the least popular among retail investors according to the Investment Association.

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After three months of being the most unpopular sector, during which time some £1.23bn has been redeemed from the sector, UK retail outflows from the IA UK All Companies sector slowed to £14m in August.

Instead after three months of positive inflows it was the IA Property sector which saw a large turn in sentiment in August, with some £530m exiting the group.

This wiped off the £196m of inflows the sector had witnessed since March.

Outflows also continued from the IA Equity Income sector, with some £165m being sold from the sector, marking the fourth straight month of outflows.

Instead investors looked to Europe and Global equity funds in August, with the two sectors attracting net inflows of £5.7m and £347m respectively.

In total net retail sales hit £3.6bn in August, which the IA reports as being the highest selling August on record.