The asset manager said it believes the numbers are indicative of an increasing uncertainty among investors over other asset classes and a desire to add more balance to portfolios. It said poor cash rates, low bond yields and equity markets hitting at all-time highs all mean investors are more interested in property now than has been the case in recent times.
Skandia’s investment platform net sales for Q2 shows the extent of the surge in property, more than doubling in terms of the proportion of sales. Property went from 13% of net sales in Q1 to 27.8% of net sales in Q2. This made it the top selling sector, marginally ahead of multi-asset on 27.5% of net sales.
“We are sensing some uncertainty from investors regarding which way the markets will turn. Some sectors have clearly fallen out of favour, such as the global specialist,” head of investment solutions Dean Bowden said. “The sudden move to property reflects this uncertainty, with investors looking for alternative solutions to diversify their portfolios,” he added.
