Norwich Union Property Trust - 3k down :(

nswan

Hi all,

First post - gulp

I have held the trust for about 8 years. Initial investment 6k. Over the last 8 years it has climbed to 14k. However my latest statement received today has it at 11k

I know the property market has been in some decline but 3k down in 6 months shocked me.

Should I stick with it or move the money into my bank acc? Any advice gratefully received.

Many thanks.

Wurz

Some of us have lost that in just days with Lloyds & Scottish Widows, in fact SWid's are now locking in policy holders to 180 days before they can do anything. They will only pay out the value as shown in 180 days time....what a con. If you are not locked in, get out whilst you have made something!

munk

Property funds went into decline in the last half of last year with substantial double digit drops around November/December time for some of them (SWIP/New Star at least, can't comment on NU). As such unfortunately you've missed the best time to sell and may do as well just to hold for now rather than selling at the bottom of the market.

The general view as far as I've gathered is that there may still be some way for the commercial property downturn to go yet, but the bottom may be in sight. There was an article in the times on Saturday about Fidelity's star manager Anthony Bolton buying back into property already (I think this is quite old news actually, I read about his buying back into property some 2-3 weeks ago now on Reuters or Citywire or similar). You could have a search for articles including the terms 'commercial property' on citywire or similar to get a feel for what the current sentiment is.

So in summary if you don't need the money urgently and are prepared to see a further slide in the short term (next year or so), perhaps hold on to the fund. If not perhaps cut your losses and bail out, 83% profit over 8 years isn't too bad after all!

As always seek the advice of an IFA though and any comment made here are strictly personal opinion and not advise.

EDIT:
Actually wurz has a point, the decision may have already been made for you if NU have imposed a 180 day moratorium on exiting the fund. Could actually be a blessing if you don't need the money urgently!

dunstonh

NU havent applied a waiting period and are not expected to. The last few drops have been small and the feeling is that we are getting close to the end of the drops.

If you are not out already you have missed the boat and may as well stay in there now. The have been predictions that NU will finish the year 8% up and whilst you can read that as guesswork, there have been some high profile individuals (such as Anthony Bolton) making positive moves towards property again.

Sillychuckie

My overall portfolio is down nearly 11%.
My biggest loser is R&M Uk eq smaller cos - down 23%.

Really got into this mini eq ISA lark at the wrong time...
Since I only started it when things were high (last april-aug), my entire H-L portfolio (and every one of the 13 funds on it is actually in the red), with value being less than cost.
Also, since i have used up my 4k, I can't put more in when the markets are down. I just hope they stay down long enough into next year, so that I can get some of next years allowance in cheaply (before the dramatic recovery). hehe.

Not nice to look at it anyway. I know im in it for the long term, but its still depressing, being down on my investment (making a loss if i pulled it out now - which I wouldn't). Still sort of within my tolerable risk... (well, perhaps a tiny bit over it - but these have been some serious market movements).
Grr.

MoneyTown

Sillychuckie wrote: »

Also, since i have used up my 4k, I can't put more in when the markets are down.

You don't particularly need the ISA wrapper when under the Capital Gains threshold. So you can buy in through HL now if you like.

nswan

Thanks for all the comments and advice guys.

Think I will sit tight.

Footsie_2

Personally I'd sit tight but do be aware that NU still may impose the same lockdowns that others have.