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Gordon
Posted: 08 September 2010 22:05:49(UTC)
#1

Joined: 25/01/2010(UTC)
Posts: 5
Is an investment in the Close Freehold Income Trust at any greater riski than investments in other property funds and if so, why?
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Anonymous Post
Posted: 09 September 2010 11:07:51(UTC)
#2
Anonymous 1 needed this 'Off the Record'

Short answer is no.

This is a ground rent fund that usually offers stable return albeit at lower yields compared to other property funds in the market due to the nature of the investments that his fund makes.
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Gordon
Posted: 09 September 2010 12:44:03(UTC)
#3

Joined: 25/01/2010(UTC)
Posts: 5
Thank you for your reply which seems to agree with one or two other opinions I have read.

I wonder, therefore, why there seems to be no FSA protection for those who invest in this fund; why you can only invest through a broker and why Hargreaves Lansdown, for instance, require you to demonstrate your suitability to invest in this fund.
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Chairman2
Posted: 09 September 2010 21:25:03(UTC)
#4

Joined: 26/06/2009(UTC)
Posts: 10
I guess the issue that HL is not coming clean about
is the liquidity risk - briefly in so circumstances with
such a narrow focussed vehicle there may be no
buyers if and when you want to sell
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