FPIL Glanmore Property Fund (P27) update

11 April 2011

There is no change at this time to the redemption restrictions outlined in our letter of September 2009 - redemption requests continue to be subject to a deferred period of up to 48 months.

The fund continues to dispose of properties and the proceeds of these sales, together with new investments into the fund and rental income from existing properties, is being used to reduce the level of the fund's borrowing.  The fund's aim is still to reduce this borrowing further during 2011.

Published research on market outlook suggests that 2011 will continue to see a divided property market, with prime stock within the City and West End of London continuing to perform satisfactorily.  The rest of the country, and in particular the secondary sector, is likely to remain in the doldrums, with a strong possibility of the more secondary assets seeing a further decline in value as debt restructuring policies may force stock onto a reluctant market.  The situation may be further exacerbated as the impact of budget cuts and increase in VAT rates takes a stronger hold on the economy.

Source: Deutsche Bank Private Wealth Management January 2011.

Policyholders who have redemption requests held in the FPIL queue will see those requests paid as soon as proceeds become available from the fund manager.

If you have any questions regarding the operation of the mirror fund or the underlying fund, please contact our Funds Marketing & Research Department.