The subprime mortgage problems in the USA have had, not unexpectedly, some impact on this side of the Atlantic with valuations on commercial property within property funds being temporarily adjusted downwards to reflect the lower prices that would be obtained if the funds were forced to sell their properties due to levels of redemptions exceeding new inflows of cash over an extended period.

The Property MultiFund holds investments in two such funds (and has benefitted enormously by their better than average performance in recent years) but now, because of the problems in the USA, the unit price has seen some small downward movements in recent weeks.

Whilst this cautionary re-pricing of the two sub funds makes sound financial sense it also, in the opinion of the investment manager for the Property MultiFund, presents the potential for an attractive opportunity. If, as he believes, the impact of the 'sub-prime' situation has now been fully factored into the sub-funds in question, we should now expect to see a return to the previous growth pattern of the funds which, in turn, will feed in the Property MultiFund.
 

If this is so; then at the moment, the Property MultiFund offers a wonderful buying opportunity in as much as any investments made now would effectively be buying into the Fund at a discount and that as the prices return to their normal path, such “discounts” will add extra performance to the average annualised returns.

The old adage of “buy low and sell high” could not be better illustrated than the current buying opportunity.
 

The nature of the Property MultiFund and its objectives, namely low volatility with above-average returns, has not altered but an investment now – at a localised “low” in the unit price – could bring much enhanced returns in the not too distant future. The low volatility of the fund is clearly illustrated in the above graph.
 

If you are already an investor in the Property MultiFund then you can add to your holding with as little as €4,000. If you are a new investor the minimum initial investment is only €15,000.

This is very definitely a good “window of opportunity”.

For more information on the Irish Life International Property MultiFund, please call OMM on 900 102 694 or enquire via our website.