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It'll definitely be in there, nicely hidden deep down in the small print and written in (arguably?) vague terms such as "being a property fund, this fund may be more illiquid that equity based funds".
What won't be there I'd be almost prepared to bet, is a stark, clearly worded, obviously placed warning that with a property fund may decide to hold on to your money for as many months as it sees fit. I would guess if such a warning was there few would invest in property funds.
Important notice
Investing in property is different from other types of investments such as investing in shares for example, it takes more time to sell property and the transaction costs are higher. The property market responds less quickly than stockmarkets and tends to be cyclical, in other words, it can rise and fall for long periods. Under certain market conditions it is possible that the high cost and time associated with buying or selling property may affect your investment in the following ways.
If we do delay, we will carry out your request using the value of units at the end of this period.
If a large number of investors cash in or switch investments from our property investments, we can reduce the value of units in the fund to protect the interests of all policyholders"
Investors should understand that due to the fact that
property assets are not as liquid as other asset types,out of the fund.
restrictions may be imposed from time to time on transfers
To someone reading the above comment - how long can the restriction be - 6 days, 6 months, 6 years, as long as they like? Do they mean maybe you can't remove 100% of your fund value in one go? Someone could just think it might take a few days longer to exit than from the fund than from an equity fund.Investors should understand that due to the fact that
property assets are not as liquid as other asset types,
restrictions may be imposed from time to time on transfers
out of the fund.
Judging by many of the posts here on AAM about such investments quite a few people don't bother reading the terms & conditions of such investment agreements at all before signing up!Well I did say originally it was "(arguably?) vague terms". But on this site alone a few people were surprised at the lock in. I doubt they can't read plain english.
Anyone know why?
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