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Property Fund - Suspended

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  • 2010
    2010 Posts: 5,496 Forumite
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    Property funds are only the first where people are trying to cash in but can`t.
    Other funds will follow!
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    2010 wrote: »
    Property funds are only the first where people are trying to cash in but can`t.
    Other funds will follow!

    That's the trouble with investors acting like a herd of buffaloes. Somebody says lion and there's a stampede for the exit. Losing all rationality.
  • coyrls
    coyrls Posts: 2,508 Forumite
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    2010 wrote: »
    Property funds are only the first where people are trying to cash in but can`t.
    Other funds will follow!

    Share based funds aren't likely to have the same liquidity issues and so if people want to cash in, they should be able to.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    2010 wrote: »
    Property funds are only the first where people are trying to cash in but can`t.
    Other funds will follow!
    They can't because the fact that the asset class got much less attractive overnight has driven a lot of people to call for their cash back overnight, while the funds don't hold sufficient liquid assets to pay out the level of cash requested.

    So, what are the examples of the other illiquid asset classes held in open-ended funds, which are likely to follow any time soon?
  • dunstonh
    dunstonh Posts: 119,781 Forumite
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    coyrls wrote: »
    Share based funds aren't likely to have the same liquidity issues and so if people want to cash in, they should be able to.

    Although they are considered higher risk (bar short term liquidity issues on bricks and mortar)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • chucknorris
    chucknorris Posts: 10,793 Forumite
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    le_loup wrote: »
    That's why you should hold property in an Investment Trust.

    I much prefer to hold property in my own name, but of course I understand that involves quite a substantial investment, that funds avoid.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • Spirit_2
    Spirit_2 Posts: 5,546 Forumite
    1,000 Posts Combo Breaker
    Thrugelmir wrote: »
    That's the trouble with investors acting like a herd of buffaloes. Somebody says lion and there's a stampede for the exit. Losing all rationality.

    I am acting like an Ostrich and not looking. Why would anything I pull out of be any better than the alternative? Looking 10 years ahead, not 10 days.

    If I now it will only make me miserable and paralysed by indecision.
  • oldwally
    oldwally Posts: 106 Forumite
    Part of the Furniture 100 Posts
    I can recall,dont know who or when (1990s?) a group of estate agents got sold off............................... for a Quid
  • EdGasket
    EdGasket Posts: 3,503 Forumite
    oldwally wrote: »
    I can recall,dont know who or when (1990s?) a group of estate agents got sold off............................... for a Quid

    ...and let's hope they meet the same fate as BHS, bunch of parasites.
  • Malthusian
    Malthusian Posts: 11,055 Forumite
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    oldwally wrote: »
    I can recall,dont know who or when (1990s?) a group of estate agents got sold off............................... for a Quid

    Probably dozens of estate agents over the past couple of decades will have gone bust and been bought from the administrators for a quid. It's standard when a company can't meet its debts but is in theory still viable (or has viable parts) for it to be sold for a nominal sum. The true cost of buying it is having to take on its debts. E.g. Halifax's estate agent business which was flogged by Lloyds to LSL Property Services for a quid in 2009.
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