Morgan Stanley Investment Funds European Property

As the negative sentiment continues in the property market there is increasing pressure on fund managers with property funds to control the increase in outflows that have been occurring over recent months and to protect existing investors. Some fund managers have already taken the decision to implement a redemption deferral period which requires a certain number of days notice before any sales can be made and it is possible that other managers might follow suit where the scheme particulars allow. This could also lead to stopping any investments into the funds to enable more prudent management. This investor protection and prudent management may cause delays if you wish to invest, withdraw or switch monies within property funds, thus before any investment decisions are made you should refer to your relevant financial professional.

The slowing in the property market also means that when the direct underlying property investments are valued in the funds there is the potential for there to be significant price changes on the basis of reduced valuations as the true and fair value of the assets is required to be used to treat customers fairly.

Any investments/disinvestments should be treated with additional caution at this time and any action should be taken in consultation with your relevant financial professional.

For further information about this fund, please visit www.morganstanley.com/msim.