Trusts hit as funds flow into equities
Since June 23, the ASX 200 Property Trust index has fallen 6.7 per cent, from 1593.9 to 1487.4. The index has fallen 1.2 per cent since July 1 and 3.5 per cent over the past month.
In comparison, the ASX 200 share price index has risen by about 25 per cent.
Property trust analysts say the shift from lower-risk property and bank stocks to higher-risk general equities is due to a belief that the stock market has bottomed.
The trust sell-off started near the end of June, when the trusts went ex-distribution, but has been exacerbated by profit-takers. A further outflow of about $1 billion is expected as recent takeovers are concluded and investors paid out. Analysts say further rationalisation is likely.