Property funds for retail investors suffered net outflows of £1.4bn in June, data from the Investment Association has shown.

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Other asset classes also suffered significant net outflows during the month of the EU referendum, but property was the worst affected sector.

The data for June captures the week after the referendum when net outflows were particularly high. Property funds also suffered large net outflows in the first week of July as many were forced to temporarily suspend trading as redemptions piled up.

Since then, those funds that have remained open, including L&G and Kames Capital, have seen asignificant improvement in flows

Earlier today. Aberdeen Asset Management relaxed the penalty imposed on investors seeking to withdraw cash from its property fund after seeing increasing buying activity within its UK funds.

Property funds net outflow of £1.4bn represented 5.7% of the sector. UK equity funds suffered bigger net outflows of £2.8bn but this was a smaller 0.5% of the equity funds sector.

Commenting on today’s figures, Guy Sears, interim chief executive of the Investment Association, said: “The retail outflow in June occurred in the context of record levels of funds under management, and represented just 0.37% of total assets during a period of intense market volatility.

“Clearly, Brexit has been unsettling, with property and equity funds particularly affected following earlier outflows during 2016. At the same time, flows were positive into fixed income and targeted absolute return sectors as investors sought safer harbours.”