For those who entered into these funds at launch, the temptation may be to hold on until it retraces back towards last April's highs. Although prices may rise from current levels, we certainly don't anticipate prices will return to previous peaks for many years. It can take decades for prices to return back to previous bubble-like levels. Our suggestion would be to wait for a modest pick-up over the next few months and transfer funds back into a more broadly diversified international share portfolio. Given that TTMs already represent around 25 per cent of the world's sharemarket capitalisation, most managers will already hold exposure towards the sector.
Investors can then use any losses as tax credits.
Robert Prugue is a director of van Eyk Research. In this section Peer precious Fairfax at 2-year low after 36pc profit fall Lend Lease .