Friends First Property Funds

T

The Gooner

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Hi - Invested €50 late 2007 in Friends First Property funds - split between Irish / UK Select Funds. In November last, fund value was 35k- in early Jan 31k. Fund is locked by Friends until end March - and in all likelyhood, that will be extended. Anyway - if I want to come out - and crystalise the losses - I have to write a letter and waiting 6 months. Heres my question- in months, god knows what the fund will have dropped to - but is anyone else out there in the same predicament - is there a desk full of application letters in Friends First with requests to withdraw?
 
Unfortunately my Mum invested €50K in Aug-07 (on my advise)in the same funds Uk Select/Irish Property (60%/40%). Her loss is around €20K, I suggested she move the UK select part of the fund to cash, as there was no 6 month wait on this fund at the time (before Christmas.) It has lost €10K. Will hope to reinvest it in a year or two if the UK property starts to improve again. Could do nothing with the Irish fund due to the 6 month wait, and also the fact that they a valuing the fund at a 12.5% exit discount. Will just have to wait and hope for an upturn in the coming years. She doesn't need this money in the short term
 
Thanks for the feedback Trev. I guess we just have to sit it out and wait for the next upturn - whenever that will come ......
 
Unfortunaltly you have no choice, as FF followed Irish Life and other providers in this regard. The main reason for this is the illiquid nature of property and if a lot of redemptions hit the cash reserves of the fund and deplete them, the only way to pay out to investors is to sell property within the fund. When the market recovers if you want to invest in property try to do so in an ETF, its cheaper than a Life company fund and more liquid as they are traded on a recognised exchange. Best of Luck!!
 
Trev - How did you manage to cash in the UK Select part of the fund before xmas - I thought FF lockedall the property funds late September ? Did you get notified by your broker or FF that the withdrawals were being "locked" at the time (Sept) ?
 
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