I have a theory that the run on the LPT is due to fear, the same fear that has had a run on managed funds so that people can transfer their money to safe government guaranteed bank deposits
The property funds that nearly collapsed some time ago due to inability to re-finance debt such as Centro are still struggling.
But sometime soon people are going to reverse again into these funds as soon as the risk premium ( LPT yield - interest rate banks give) rises further with falling interest rates. Even at this time the risk premium is huge. They will see their savings producing less and less yield in bank deposits, then they will take on the risk.
Now this is only my theory so lets have your views. I could be wrong?
MOF Price at posting:
27.8¢ Sentiment: Buy Disclosure: Held