Cofunds: Sales in property sector fell 60% after EU vote

cofundslogoInvestors who shunned the property sector in 2016 caused the sector to see a 60 per cent drop in gross sales in the last six months of 2016, the platform has revealed.

The losses were caused by the wave of redemptions from open-ended funds amid the uncertainty around commercial property investments following the EU referendum in June.

In the months between July to December 2016 compared to the period a year earlier, Cofunds also saw a 35 per cent reduction in sales for the UK equity sector.

Menawhile, North American sector sales also decreased 20 per cent after the US election result.

However, investors’ appetite for bonds increased with corporate bonds sales increasing by 42 per cent in gross sales, the platform says.

Cofunds believes investors are opting for less risky assets as the political upheaval takes centre stage.

Cofunds head of fund manager relations Britt Holland-Ellice says: “The general trend suggests that given recent political outcomes, clients have opted to avoid potentially volatile areas, place money into lower risk investments and in some cases hedge against a fall in market value.

“This has been illustrated on the Cofunds platform with gross sales reducing among the UK and American sectors. In turn, investors have been looking to diversify their portfolio, resulting in sectors such as Global seeing a 30 per cent increase in gross sales following the political changes.”