The Premier Diversified Property Fund invests in commercial properties in the United Kingdom. It was only offered to Accredited Investors.
The Premier Diversified Property Fund was launched in 2002 and had a whopping return of about cumulatively 45% for 5 years. Its volatility was almost as low as risk-free. I, like many financial advisers, were approached to market this fund.
Unfortunately, since the financial crisis, the fund never recovered. One of my client lamented he regretted buying this fund (he did not buy the fund from me though).
I was fortunate that I did not recommend this fund to any of my clients.
The following was the performance. Note that the graph shown is in Sterling. After conversion to SGD, the investment was a disaster:
Diversification is the most important approach in investment. You cannot be sure whether the investment will turn out to be a lemon. If in doubt, just stick with retail investments.
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