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Principal US Real Estate seperate fund
12-13-2008, 08:24 PM
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#1
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Recycles dryer sheets
Join Date: Nov 2008
Posts: 153
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Principal US Real Estate seperate fund
Anyone else stuck with this mess? Value of my investment in this commercial real estate ownership fund has dropped about 20% and we can't touch the money short of death. Since 09/25/08 the fund has been locked down to any redemptions due to liquidity problems unless you die. Don't want to sell buildings at a loss they say and not enough cash to support any redemptions so I just sit on the sidelines and watch it crash. I've been in the redemption queue since 09/29/08 with no word on the status other than no cash to meet redemptions......what a mess! 
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12-14-2008, 08:32 AM
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#2
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Ick. That's one reason why I've started to prefer ETFs over traditional mutual funds.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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12-14-2008, 08:41 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
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Unless you've only owned this fund for a year you should be very happy about the performance of this fund.
It is a very unique fund, and people never seemed to complain when the volatility was a small fraction of REIT funds.
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12-14-2008, 12:08 PM
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#4
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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 Quote:
Originally Posted by saluki9
Unless you've only owned this fund for a year you should be very happy about the performance of this fund.
It is a very unique fund, and people never seemed to complain when the volatility was a small fraction of REIT funds.
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Even so, regardless of its performance I think I'd feel a right to complain if they "locked" my money for months so I couldn't redeem my shares.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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12-14-2008, 06:01 PM
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#5
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Recycles dryer sheets
Join Date: Nov 2008
Posts: 153
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Long horizon...
Yes, I've owned the fund for a long time and had great performance...not doubt with limited volatility as you suggested. Just a feeling of being helpless to have it locked up now while liquidity is managed in a black box.
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12-14-2008, 09:09 PM
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#6
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by ziggy29
Even so, regardless of its performance I think I'd feel a right to complain if they "locked" my money for months so I couldn't redeem my shares.
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That might be part of how they achieve good performance. Certain things a manger cannot do if people can cut and run whenever they get scared.
Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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12-14-2008, 11:11 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
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Quote:
Originally Posted by MovingtotheCove
Yes, I've owned the fund for a long time and had great performance...not doubt with limited volatility as you suggested. Just a feeling of being helpless to have it locked up now while liquidity is managed in a black box.
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For those who don't know, this is basically the only fund of it's type. They actually buy properties as opposed RE securities. When they get large redemptions they actually have to go sell buildings.
I agree that it sucks to be locked up, but it's better for the long term shareholders. I think they should have made it part of the funds charter that they limit redemptions to 2% a quarter or something similar instead of waiting for a run to do it.
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