Unlisted pooled property funds see record inflows

British unlisted pooled property funds (PPF) saw their highest net flows on record during the 12 months to June.

According to the Association of Real Estate Funds (AREF), PPFs have seen net inflows of £5.8 billion over the past year, of which £900m were over the second quarter of 2010.

Net asset values (NAV) have risen to £30.5 billion a combination of performance and inflows, up from £21 billion in June last year.

AREF says the All-Pooled Property Fund index saw a positive total return of 3.4% in the second quarter, down from 5.9% in the previous quarter.

Although results were down quarter-on-quarter, PPFs saw a positive return of 22.9% over 12 months. (article continues below)

Retail investment in pooled property funds reached £7.8 billion in the second quarter, back to the levels last seen in 2007.

Despite this, the pace of new capital raised by retail investors decelerated by 36% quarter-on-quarter, to £734m.