Press Release

Moneyspider.com

PRESS RELEASE

FOR IMMEDIATE DISTRIBUTION 
 

04 February 2008 

Commercial property sector set for further steep losses - MONEYSPIDER.COM warns investors to urgently review holdings  

Grim outlook for former favoured sector, says Moneyspider.com (www.moneyspider.com). 

 
INVESTORS are being advised to urgently check with their commercial property fund manager on penalties and conditions for exiting their funds as conditions for the once favoured sector continue to worsen. 

As the Royal Institution of Chartered Surveyors (RICS)* forecasts a bleak year ahead for the sector following reports that demand for space in the retail sector is at its lowest since 2003, and new data revealing that the market suffered its worst quarterly performance ever at the end of last year, there is now likely to be rush for the exit, said online fund performance data service Moneyspider.com's Tony Ahearne. 

"This is now looking like a sector in freefall, with total returns - the combination of rental income and capital growth - crashing 7.6 per cent in the last quarter of 2007*.  

"According to industry benchmark IPD, it is the biggest fall in the history of the index**, and it is now looking highly likely that this downward trend will continue this quarter and beyond as the retail sector on the High Street struggles in the face of falling consumer demand," he said. 

"Investors will not take any comfort from that the fact that there is around £12bn in property derivatives tied up in the commercial property market, and the IPD data indicates there will be at least two more years of negative returns.

"Many of the major commercial property funds are slamming the door shut on investors - the illiquidity of the asset class means that some fund managers are locking in their investors for periods as long as 12 months. 

"A number of funds are also levying heavy penalties for early withdrawals - so Moneyspider.com is warning investors who are unwilling to take a very long term view of this sector to find out from their manager what the earliest possible penalty-free withdrawal date is, and to research alternative investment opportunities." 

And with continuing volatility across all equity sectors, Ahearne stressed that now is a crucial time to review private investor portfolios to see where investments might better perform.  

"Commercial property is being particularly badly hit, but a number of other popular equity sectors such as UK All Companies and North America are also being battered. Moneyspider.com enables its users to instantly compare apples with apples, showing which of their funds in particular sectors are outperforming and - crucially - underperforming, in these turbulent times," added Ahearne. 

Moneyspider.com has no registration fee and the service not only rates the performance of the client's own funds but also shows a comparison with the top five funds in the same sectors - so Moneyspider.com investors can see where the real profits have been. 

The service, designed to appeal to the 'Joe Average' investor, is a comprehensive yet easy-to-understand fund monitoring tool delivering personalised reports, including valuations and ratings on each investor's individual fund, all updated on a daily basis.  

Further details on the mechanics of Moneyspider.com can be found at www.moneyspider.com. 

* Source: RICS report 1 Feb 2008

** The IPD Index was established in 1985 

- ENDS - 

Editor's notes

Moneyspider was launched in April 2004 and is a totally independent investment research and information company for private investors. Moneyspider constantly monitors all 2,000 or so funds available to UK investors and provides online personal reports that are updated on a daily basis showing current valuation and performance of all funds in one place.

The Moneyspider Rating® provides a unique assessment of the performance of each fund measured against four key parameters:

• Sector ranking: a comparison with all other funds in the same sector as your fund (based on the sector definitions used by the Investment Management Association).
  
• All funds ranking: a comparison with all other 2000 or so Unit Trusts and Open Ended Investment Company funds available to UK investors.
  
• FTSE 100: a comparison of the total return of the fund with the total return of the FTSE 100 index (comprising the UK's 100 largest companies), providing a consistent benchmark for each fund.
  
• Cash: a comparison of the fund's performance with the return from an equivalent amount deposited in a 90 day non-high interest access account.

Moneyspider is an appointed representative of Anthony, Bryant & Company (Investment Consultants) Limited of 25 Eccleston Square, London SW1V 1NS, which is authorised and regulated by the Financial Services Authority. The contents of this press release are not intended, and should not be construed as, advice, a recommendation or as an inducement to buy or sell any investment. Moneyspider relies on information regarding investments that is provided by third parties and accepts no liability (including that arising from negligence) for the accuracy of such information.