# Quinn Life Freeway Funds



## nelly123

Hi,

Just a few questions about Quinn Life Freeway Funds please, as I am new to investing.

First off, these savings funds are structured as life assurance policies, what does this mean in comparison to a regular savings fund?

What is the difference with funds which buy "units" as opposed to buying shares directly?

It states that the exit tax on encashment is 23%, but I thought I saw something before about life assurance policies being taxed @ 40%, which is correct? Any other tax issues?

How are dividends handled, are they reinvested back into the fund and are you required to pay income tax separately on these?

These may be basic questions but one can only learn by asking. Really would appreciate any feedback. 

Thanks


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## ClubMan

nelly123 said:


> First off, these savings funds are structured as life assurance policies, what does this mean in comparison to a regular savings fund?


No different. Most if not all unit linked funds are structured as life assurance policies.


> What is the difference with funds which buy "units" as opposed to buying shares directly?


Have a read of the _AAM _and _IFSRA _guides to savings and investments linked from the key topics thread at the top of this forum.


> It states that the exit tax on encashment is 23%, but I thought I saw something before about life assurance policies being taxed @ 40%, which is correct? Any other tax issues?


Tax on most or all unit linked funds is 23% of any growth automatically deducted on exit with no other tax liability.


> How are dividends handled, are they reinvested back into the fund and are you required to pay income tax separately on these?


They are invested back into the fund. Tax is normally taken care of.


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## nelly123

Thanks for the advice

I noticed revenue are involved in some form of clampdown relating to life assurance policies. Does this mean I would need to inform them if I opened a fund, as in declare the fund on some tax form?

Also, can I invest different amounts at different times as I see fit or does it have to be regular fixed amounts?

Is it generally better to split the % invested between several funds or stick to 1 or 2 and hold out for a positive return?
I know this question is a matter of personal opinion, but just wondering what experience others may have encountered with these funds.

Thanks again


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## ClubMan

nelly123 said:


> I noticed revenue are involved in some form of clampdown relating to life assurance policies. Does this mean I would need to inform them if I opened a fund, as in declare the fund on some tax form?


No.


> Also, can I invest different amounts at different times as I see fit or does it have to be regular fixed amounts?


 Depends on the fund/provider but I think that _QL _allow arbitrary lump sum top-ups whenever you like (maybe subject to some minimum amount).


> Is it generally better to split the % invested between several funds or stick to 1 or 2 and hold out for a positive return?


 Depends on your investment goals, timeframe, attitude to risk/volatility. No easy answer without more details and no general one size fits all answer. For pure investment advice on which funds to select etc. it's a good idea to talk to an independent, professional advisor.


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## Taximan

Nelly the person who is selling this product to you should be answering these questions for you. 

The reason most are sold through a life assurance package is that the seller is not regulated to sell you a unit trust product they can only sell unit linked products because they are life companies. The ownership structure is slightly different between a unit trust product where you own the units and a unit linked where the company owns the shares. My understanding is that on Death units in a unit trust can be transferred as part of the estate whereas a unit-linked product is sold immediately on death. Obliviously there must be some additional expense in a unit-linked product as it provides some sort of life policy above a unit trust package.

There is a big difference between a unitised structure and owning shares directly. Generally you will get far greater diversification in a unit fund then a segregated unless you are loaded and can afford a bespoke segregated fund. Your Tax in a unit fund (Rollup) is at 23% exit tax only on encashment the dives are repaid back into the fund and only on encashment will the tax hit. Segregated funds are talked at Marginal rate on dividends and then CGT at 20% on gains. You also have the inconvenience of annual tax returns, which can be expensive.

Be extremely vigilant on costs they might tell you, you an make regular payment but they will fleece you blind on charges on them 5 % is not uncommon. So you are automatically down 5% plus annual manage mat charge of aprox 1.5%.  Other expenses can be another .5%. 

Ask are there any upfront charges?
Any Exit Charges?
Total Expense ratio for Fund? ( Annual mgt fee + other exp Audit, Trustee etc)
NB. Regular premium what are the charges for these. 

IMHO unit funds are far better if you have a lump sum to kick them off.


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## AJC

Taximan said:


> ....
> 
> Be extremely vigilant on costs they might tell you, you an make regular payment but they will fleece you blind on charges on them 5 % is not uncommon. So you are automatically down 5% plus annual manage mat charge of aprox 1.5%. Other expenses can be another .5%.
> 
> Ask are there any upfront charges?
> Any Exit Charges?
> Total Expense ratio for Fund? ( Annual mgt fee + other exp Audit, Trustee etc)
> NB. Regular premium what are the charges for these.


I would agree with Taximan that you need to watch charges carefully when investing. I do think that the Quinn Freeway products come in at the *lower* end of the scale, and would not be as expensive as those quoted above.


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## MLT

"Be extremely vigilant on costs they might tell you, you an make regular payment but they will fleece you blind on charges on them 5 % is not uncommon. So you are automatically down 5% plus annual manage mat charge of aprox 1.5%. Other expenses can be another .5%."

I've recently opened the childs savings policy with Quinn Life and did my research before hand as I'd the heard horror stories of hidden charges! I finally went with Quinn Life because they were providing the type of product I wanted but they also confirmed they have no hidden charges and the 1 or 1.2% charges are all you will incur - no additional charges i.e upfront charges, exit charges. I think you may have to pay for switching funds after you have done a certain amount but thats it. I'm putting money in monthly and there are no charges. 

I've been very impressed with any communication I've had with Quinn Life and their online service has been great for checking the performance & doing a switch between funds.


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## ClubMan

Taximan said:


> Nelly the person who is selling this product to you should be answering these questions for you.



But if the person selling the product is a tied agent, and I don't think that _QL_ funds are sold via brokers/intermediaries, then don't expect independent, professional advice from them as opposed to hopefully straight answers to straight questions about their specific products.


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## ClubMan

Taximan said:


> IMHO unit funds are far better if you have a lump sum to kick them off.


Why? If there is no per contribution charge (as with _QL _for example) then there is no cost advantage in making a single lump sum contribution versus drip feeding it over a period of time. Of course the lump sum approach means that the total amount is invested for longer but the drip feeding approach may benefit from euro cost averaging...


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## Satanta

In relation to Taximan's post he seemed to be talking in very generic terms rather than in reference to the QL product specifically. 

As ClubMan pointed out with QL there is no charge per contribution so you can build up your "lump sum" over time (should you not have it initally) while still gaining the (possible) advantage of having it invested for that time and also gaining from the potential cost averagings.


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## ClubMan

Just one thing - the minimum contribution amounts with _QL _are €1,270 (lump sums) and €51 (monthly).


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## CCOVICH

Re. their new 'Pride And Joy' savings plans, are these in any way different from what is already on offer via Freeway?

I know there is a €25 bonus when sigining up, but is that it?

(I will start a separate thread if needed)


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## ClubMan

CCOVICH said:


> Re. their new 'Pride And Joy' savings plans, are these in any way different from what is already on offer via Freeway?


Can't find any mention of this product on their website. Do you have any links?


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## CCOVICH

ClubMan said:


> Can't find any mention of this product on their website. Do you have any links?


 
Nope.  Got a flyer in the post on Friday.  Lot of bumpf about €25 free, but no mention of other features.  Aimed at investing for children, but Freeway was already suitable enough on its own IMHO.

Seems like a gimmick.


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## MLT

ClubMan said:


> Can't find any mention of this product on their website. Do you have any links?


 

No. I have access to my policy through the My Quinn Life section which only policyholders have access to. 

I initially read about the "Pride n Joy" product in the paper and rang about it. I was told the website is being completely updated so you'll be able to view it soon. When I rang they sent me "Pride n Joy" brochure instead with complete details.


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## CCOVICH

MLT said:


> IWhen I rang they sent me "Pride n Joy" brochure instead with complete details.


 
What's the skinny?  Any different to Freeway?


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## DrMoriarty

Beats "Shock'n'Awe", I suppose..! 

Missed the ad, and haven't received that particular flier just yet, but I presume it'll be forthcoming..?


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## nelly123

Thanks to all who responded. Much appreciated.

Now a few more questions please.

I see each QL fund is comprised of a select number of companies related to a specific industry sector. Now, say the fund comprises 10 companies, does it take the performance of each company & average out results between the 10 to give the performance chart OR does it take the performance of the specific sector, eg "biotech", as a whole, OR does it just track the performance of the exchange?, if so, how do companies relate to overall results if it just follows the exchange?
Hope this makes sense.

Also, if I placed say 2,000 in the fund and after about 2 years it was still the same value (no profit) would I still be charged 23% tax on encashment or is it only taxed on profit? eg, if it grew to a value of 3,000, is 23% tax applied to 1,000 profit or the entire 3,000?

Thanks


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## bocade

Total Expense Ratio is a term used for what are usually listed funds.  The total charges on quinn funds are as shown in the charges section of the website i.e. 1% on Euro Freeway.  I checked this before investing.

Many of the Quinn funds are relatively new and indeed the UK fund was only launched in June this year.  Given this, it would be impossible for them to show any real trend on their funds.  They make it clear in their promotional material that the graphs are for the underlying indices so I don't see the issue.  As long as they are fully upfront and given they are index tracking the information obtained from the indices performance over eight years is more informative to the customer than showing a graph of a fund that is 0-3yrs established.  

Exit tax is calculated on the average profit.  In order words if you encash 1/2 value, 1/2 of the original total of investments is allocated to this.  Exit tax has different rules for its calculation than the calculation of the CGT on the sale of shares.


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## CCOVICH

bocade said:


> Total Expense Ratio is a term used for what are usually listed funds. The total charges on quinn funds are as shown in the charges section of the website i.e. 1% on Euro Freeway. I checked this before investing.



The Total Expense Ratio(TER) is more than just the annual management fee, it includes all expenses incurred by the fund and reflected in the unit price.  More discussion here and elsewhere on AAM.


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## bocade

I am aware TER is management charge and other expenses/charges. I checked with Quinn before investing and the charges quoted are the only charges applied to the funds.


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## bocade

SPC100, Unit linked funds generally would not have salaries, legal fees etc charged to the funds.  You are probably thinking of a unit trust which incorporates all the auditors fees, salaries etc as you describe but is structured more like a company in that it holds its own assets, statutory accounts are produced and corporation tax calculated and charged to the unit trust.

The likely hidden charges in unit linked funds tend to be custodian fees and brokers commissions on the purchase and sale of shares. Quinn's have confirmed to me before investment that these fees are not charged to the fund and the only charge is the 1% or 1.2% and that these charges are the TER of the fund, if you prefer to use that term.  I have verified this subseuently by following the portion of my investment which is invested in Euro Freeway.  I compare its performance verses the Dow Jones Euro Stoxx 50.  It is out by very close to 1% annually i.e. the management charge, so I didn't just accept the line from Quinn but at this stage have been given no reason to doubt it.

They do show the performance of their funds on the fund prices page on the website and I, prior to investment, also asked them to send me additional information such as the average P/E ratios of the underlying indices and they obliged.  Try asking one of the larger companies the average P/E ratio of one of their funds!

You suggest more appropriate graphs - such as? If the graphs show the underlying index they are tracking, I would suggest they are appropriate.

The ISEQ20 was launched mid-2005, there were no historic figures prior to its launch.  ISEQ have derived historical information back to 1997.  Quinn does not say it is tracking this, in fact as I was invested in their Celtic Freeway fund from 2003 it would be hard for them to have tracked the ISEQ20 as it didn't exist at the time.

Biotech, I asked for a full list of the companies and was sent it prior to my investment, although I didn't invest in Biotech in the end.  The list was of 19 companies and all 19 were in the top 22 listed in the Nasdaq Biotechnology at the time I was looking at it.

I have always found it very easy to get to speak a senior manager in Quinn Life when I have a query, as a customer you always have the option of making your suggestions to them.  In one of their customer surveys, I suggested an on-line facility for checking my fund value on-line, 9mths later I got a letter saying it was available.


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## nelly123

Can somebody explain what is meant by the term "euro cost averaging" please?
It was stated earlier that drip-feeding the fund may benefit from "euro cost averaging"?
Is there any transaction charge when lodging money to the fund, either monthly or in lump sum payments made from time to time?


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## RS2K

nelly123 said:


> Can somebody explain what is meant by the term "euro cost averaging" please?
> It was stated earlier that drip-feeding the fund may benefit from "euro cost averaging"?



Unit prices go up and down. On the assumption that over a longer term the prices will rise, then shorter terms dips can actually provide a good buying opportunity.

This applies to regular premium investments only (you buy units perhaps monthly) and explains why regular premium investments such as equity SSIA's, PRSA's, pensions, and other savings plans can actually benefit from investment in more aggressive funds.


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## ClubMan

nelly123 said:


> Can somebody explain what is meant by the term "euro cost averaging" please?


http://en.wikipedia.org/wiki/Dollar_cost_averaging


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## nelly123

The funds offer 2 investment options, lump sum or regular savings. However, is it possible to place an initial lump sum and then add smaller amounts to the fund at different times throughout the year (ie irregular payments) depending on circumstances, or would I need to open 2 separate accounts, 1 for a lump sum, another for regular savings?


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## beetlebum

> is it possible to place an initial lump sum and then add smaller amounts to the fund at different times throughout the year


yes


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## nelly123

Some of the funds state that they invest in a select group (basket) of companies listed on a particular index/exchange. Is it possible to obtain a list of exactly what companies the funds invest in when it does not just track the index itself?
Also, if I had a fund with 2,000 initially & it grew over time to a value of say 4,000 & I then withdraw 1,000. Assuming the 2,000 was split with 50% in fund x, 25% in fund y & 25% in fund z. When the value changes due to growth & withdrawals, is this % readjusted each time to keep the same ratio or how does this work? Hope my question makes sense?
Thanks


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## nelly123

Assuming I split my investment with 75% in 3 equity funds (25% in each fund) & the remaining 25% in the bond fund, can I view an individual performance chart for each fund (for each 25% invested) or just an overall combined chart comprising the full 100% investment averaged out.
Thanks.


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## nelly123

Is there a transaction charge, either for lump sums or regular savings deposits?
Is there an online facility where you could deposit to the account by credit card or is it only cheque/direct debit options?
The minimum deposit for lump sums is 1,270 but does each additional lump sum have to be a minimum of 1,270 again each time or can I add any smaller amount after the initial input?
In regards to direct debit, can this be stopped completely & then resumed again at any point, depending on financial situations at the time?, without the account having to be encashed/closed?

Thanks.


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## bocade

nelly123 said:


> Some of the funds state that they invest in a select group (basket) of companies listed on a particular index/exchange. Is it possible to obtain a list of exactly what companies the funds invest in when it does not just track the index itself?
> 
> Yes, I have done this in the past by contact Quinn Life on
> 
> 
> Also, if I had a fund with 2,000 initially & it grew over time to a value of say 4,000 & I then withdraw 1,000. Assuming the 2,000 was split with 50% in fund x, 25% in fund y & 25% in fund z. When the value changes due to growth & withdrawals, is this % readjusted each time to keep the same ratio or how does this work? Hope my question makes sense?
> Thanks


 
No, it is not automatically adjusted.  If it was automatically adjusted this would mean selling out of the better performing fund to but into a lesser performing fund. You can instruct Quinn Life to rebalance the portfolio to you original or a new split or you can do it yourself on-line.  If you are withdrawing you will also need to tell them what fund/s you want to sell out off.


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## bocade

nelly123 said:


> Assuming I split my investment with 75% in 3 equity funds (25% in each fund) & the remaining 25% in the bond fund, can I view an individual performance chart for each fund (for each 25% invested) or just an overall combined chart comprising the full 100% investment averaged out.
> Thanks.


 
There are fund performance charts which allow you to see how the individual funds are performing and policy performance graphs where you see the whole investment in the secure area of the web-site.  You need to have an active investment in order to get a log-on to this section of the web-site.


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## bocade

nelly123 said:


> Is there a transaction charge, either for lump sums or regular savings deposits?
> Is there an online facility where you could deposit to the account by credit card or is it only cheque/direct debit options?
> The minimum deposit for lump sums is 1,270 but does each additional lump sum have to be a minimum of 1,270 again each time or can I add any smaller amount after the initial input?
> In regards to direct debit, can this be stopped completely & then resumed again at any point, depending on financial situations at the time?, without the account having to be encashed/closed?
> 
> Thanks.


 
No Transaction charges on either lump sum or regular savings.

Cheque, DD and telegraphic transfer.

Additional lump sums after the first €1270 can be for any amount.

You can stop and start a savings policy by notifing Quinn.  The policy does not need to be closed.


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## nelly123

Thanks for the advice. Much appreciated.


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## nelly123

If I opened a regular saving fund, as opposed to a lump sum fund, can  I place an initial lump, say 2,000 in the account & then add payments of about 200 each month or are you only allowed to build up from scratch with the monthly amount?


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## Berni

You can start with a lumpsum & then add to it monthly.


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## nelly123

Great thanks.


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## Sarsfield

bocade said:


> Additional lump sums after the first €1270 can be for any amount.


 
Are you sure about that? I thought each and every ad-hoc payment had to be at least €1270.

And as an aside, when are we going to get over this Punt-related number.  It's still everywhere!


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## beetlebum

> Are you sure about that?


it does not have to be 1270, i think there is a monthly minimum of about 50 yoyos for regular contributions


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## Sarsfield

beetlebum said:


> it does not have to be 1270, i think there is a monthly minimum of about 50 yoyos for regular contributions


 
Regular (scheduled) contributions can be low, but I still think one-off ad-hoc payments have to be €1270

From the QL site



> *Minimum Premiums*
> 
> For regular monthly premiums *€51*
> For a lump sum investment *€1,270*


 
Maybe I'll phone them tomorrow for clarification.  It would make a difference to my investment pattern!


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## nelly123

In relation to opening a freeway fund, if I initially opened a lump sum investment fund with X amount just to see how it performs, can I change the account to a regular saver at a later date or would I need to open a new, separate account for this?


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## bocade

Nelly123, as you have a lot of specific T&C questions about Quinn investments would it not be better to e-mail them with a list of questions.  There is a better chance of getting fully accurate replies.

info@quinn-life.com


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## nelly123

I have been asking these questions directly also, but some questions are better answered by individual experience of investors who have no ties to a specific company or product as opposed to quinn employees who will naturally promote their product in the best light possible.


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## bocade

nelly123 said:


> In relation to opening a freeway fund, if I initially opened a lump sum investment fund with X amount just to see how it performs, can I change the account to a regular saver at a later date or would I need to open a new, separate account for this?


 
What did they reply to this question?  With respect, these are terms and conditions questions that have factual answers either you can move to a regular saving account or not.  I cannot see how the company could sway the answer to this one in order to make the product look good.

Now if you are asking about how quickly or accurately their customer care reponds to queries or something along those lines then yes actual customer experience/feedback is relevant.  

You will note by reading the previous answers that people are disagreeing or unsure of the answers to some questions so you could be getting inaccuarate information on the basic workings of the investment.


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## nelly123

In relation to my question about moving to a regular savings account, yes I respect what you're saying in this regard. But the majority of my questions are open-ended & I am simply trying to gain knowledge on investing.


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## dumbass

hello
new user: dumbing it down if thats ok?
done some research into the freeway funds and jumped online to get more. pretty exhaustive thread here but my question is really untechnical and really specific to me, so i'm still not sure. i'm getting on in years and just want an "account" where i can invest money (lump-sum, moderate ssia dividend) and hopefully get regular returns for lifestyle spending. 
quinn life claim that you 'can cash in part of your investment at any time', so i guess my question is: 
how practical is it to expect to withdraw semi-regularly? 

(practical as regards easineess of access, but also as regards the costs and penalties)

deposit accounts offer ridiculous returns, but should i be looking at a completely different form of investment?

(i understand there may not be enough background info here, and i apologise to professional posters, so feel free to ignore; but any advice would be appreciated...)


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## nelly123

Hi

I received the information packs in the post from Quinn Life about their Freeway Funds.
Just a few quick questions in relation to their content.

It states that an indexation rate of 5% p.a. is applied to the regular premium. What does this mean?

In relation to the Regular Savings plan, if I start with a single premium injection of 2,000 & pay a regular monthly premium of 100, initially, do I pay 2,100 (ie. 2,000 injection & 1st monthly payment of 100), OR just pay 2,000 initially & 100 will be taken out each month thereafter?

Another statement in the documentation reads "Transaction charges of 3.81 euro per month for Regular Premium Term Life policies". Is this different to open-ended policies as the website states there are no transaction charges? Only charge is the yearly maintenance fee of 1%/1.2% for respective funds.

Also, as regards the documentation required with the application such as driver licence, credit card statement & tax free allowance certificate. I have these documents but it states they need to be dated within the last 3 months which is not the case with the driver licence or tax free allowance certificate. Does it matter if they are over 3 months old?
Appreciate any feedback.

Thanks


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## ClubMan

nelly123 said:


> It states that an indexation rate of 5% p.a. is applied to the regular premium. What does this mean?


It means that by default they will increase the amount that you pay (by varying the direct debit) by 5% in order to attempt to keep pace with inflation and keep the real value of your contribution the same as it was originally. You can normally ask them not do do this automatically or at all if you don't want it.


> In relation to the Regular Savings plan, if I start with a single premium injection of 2,000 & pay a regular monthly premium of 100, initially, do I pay 2,100 (ie. 2,000 injection & 1st monthly payment of 100), OR just pay 2,000 initially & 100 will be taken out each month thereafter?


It all depends on how you want to start. I thought that the single lump sum and regular monthly contribution setups would be different policy numbers. Do they allow for a single fund seeded with a lump sum and then toppped up monthly?


> Another statement in the documentation reads "Transaction charges of 3.81 euro per month for Regular Premium Term Life policies". Is this different to open-ended policies as the website states there are no transaction charges?


I don't think so. Many (most?) regular contribution products structured as life assurance policies levy a monthly policy fee for regular contributions. One thing to check is whether or not this policy fee continues to be charged (through encashment of units if necessary) if/when you stop making regular contributions for whatever reason.


> Also, as regards the documentation required with the application such as driver licence, credit card statement & tax free allowance certificate. I have these documents but it states they need to be dated within the last 3 months which is not the case with the driver licence or tax free allowance certificate. Does it matter if they are over 3 months old?


Probably - you need to meed the money laundering/identification requirements to the letter these days.


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## CCOVICH

ClubMan said:


> It all depends on how you want to start. I thought that the single lump sum and regular monthly contribution setups would be different policy numbers. Do they allow for a single fund seeded with a lump sum and then toppped up monthly?


 
According to Berni, they do





			
				nelly said:
			
		

> Another statement in the documentation reads "Transaction charges of 3.81 euro per month for Regular Premium Term Life policies". Is this different to open-ended policies as the website states there are no transaction charges? Only charge is the yearly maintenance fee of 1%/1.2% for respective funds.


 
I thought that the €3.81 no longer applies to QL savings plans (maybe pensions?). It was discussed on AAM before, and I think there are inconsistencies in the information that QL publish.


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## bocade

Quinn Life charges 3.81 per month on Term Life polices.  

They do not charge transaction charges on monthly unit linked products i.e. savings or pensions.

Nelly123 said it was a term life policy charge.  This is unrelated to their savings and pensions. Term life is a fixed sum, fixed term, life insurance product like mortgage protection (although the sum assured reduces in mortage protection).


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## ClubMan

bocade said:


> Quinn Life charges 3.81 per month on Term Life polices.
> 
> They do not charge transaction charges on monthly unit linked products i.e. savings or pensions.
> 
> Nelly123 said it was a term life policy charge.  This is unrelated to their savings and pensions. Term life is a fixed sum, fixed term, life insurance product like mortgage protection (although the sum assured reduces in mortage protection).


Do _QL _do life assurance? Are you sure that there's not some confusion about the fact that _QL _(and most or all other) unit linked funds are actually structured as life assurance policies under the hood?


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## bocade

I have checked.  Quinn have existing term life policies and they charge €3.81 transaction charge monthly on these policies.  As they still have active policies they are obliged to detail this charge on their terms of business but are not currently writing new business on the term life product.

They have no monthy transaction charges on savings or pensions.


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## nelly123

Thanks to all for the advice.



> Do they allow for a single fund seeded with a lump sum and then toppped up monthly?


 
As regards your query above ClubMan, yes QL confirmed that you can open a Regular Save policy with an initial lump injection followed by regular monthly installments.


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## Dman

Hi Folks, 
Quick question in relation to Euro Bonds for Quinn Life. 
It says 'If interest rates rises then bond prices with fixed rates of interest attached will fall'

Sorry stupid question here, but does that imply that Quinn Life Bonds have a fixed rate of interest e.g. the value of the fund will drop if European interest rates go up?
Thanks


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## richieg

In relation to flexability about payments into a freeway account I know you can start with a lump sum, change over to monthly payments but can you add discretionary lump sums if desired at later irregular points?


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## nelly123

I noticed the following statement on the Regular Premium Savings Plan proposal form:

Declaration of Insurer or Intermediary:

"I have advised the client as to the financial consequences of replacing an existing policy with this policy by cancellation or reduction, and of the possible financial loss as a result of such replacement".

This does not apply to me as I have no other life policy but can you explain what this statement means please?

Also, as I would probably be seeking a mortage in the near future, I think they offer some form of life assurance policy with a mortage if I am correct, I am not sure about this. If this is the case, how would it effect this Quinn Life policy or vice versa? ie, what are the above "financial consequences" in this situation?


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## ClubMan

nelly123 said:


> This does not apply to me as I have no other life policy but can you explain what this statement means please?


I think it also encompasses any product structured as a life assurance policy - e.g. any other unit linked investment - and is to guard against churning. 


> Also, as I would probably be seeking a mortage in the near future, I think they offer some form of life assurance policy with a mortage if I am correct, I am not sure about this.


In general owner occupier mortgage holders are required to take out mortgage protection life assurance which clears the mortgage in the event of the death of the mortgage holder(s). They are not obliged to purchase this from their lender and shopping around is generally a better idea.


> If this is the case, how would it effect this Quinn Life policy or vice versa? ie, what are the above "financial consequences" in this situation?


No.


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## PMU

richieg said:


> In relation to flexability about payments into a freeway account I know you can start with a lump sum, change over to monthly payments but can you add discretionary lump sums if desired at later irregular points?


 
Yes (once its 1270 euro or greater). Remember these guys are in the business of getting you to invest with them.


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## bocade

"Yes (once its 1270 euro or greater)."

Wrong, once the regular saving or lump sum had been set up with either €51 minimum or €1,270 respectively then any amount can be added subsequently.  I add a lump sum of €1,000 every qtr so have first hand experience.


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## PMU

bocade said:


> "Yes (once its 1270 euro or greater)."
> 
> Wrong, once the regular saving or lump sum had been set up with either €51 minimum or €1,270 respectively then any amount can be added subsequently. I add a lump sum of €1,000 every qtr so have first hand experience.


 
Well, they've never refused an ad hoc investment of 1270 of mine.  As I said:these guys are in the business of getting you to invest with them


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## Satanta

PMU said:


> Well, they've never refused an ad hoc investment of 1270 of mine.  As I said:these guys are in the business of getting you to invest with them


Bocade was questioning you saying it had to be over €1270 (he cleary states that he contributes ad-hoc payments of €1000), he didn't imply they wouldn't accept the payment of €1270.


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## Sarsfield

bocade said:


> Wrong, once the regular saving or lump sum had been set up with either €51 minimum or €1,270 respectively then any amount can be added subsequently. I add a lump sum of €1,000 every qtr so have first hand experience


 
That's good to know. I'd planned to give them a call on this subject myself.

Edit to note that QL has updated it's site and it's FAQ which confirms the above:



> 5. What is the minimum/maximum I can invest?
> 
> The minimum investment amount on a lump sum investment policy is €1,270, and on a regular savings policy it is €51. There is no maximum investment amount. *There is no restriction on additional contributions after inception.*


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## hattrick_12a

This is a good Topic, cleared alot up for me. fair play nelly for asking the questions.

so lets say you start this fund and just for aguement sake(don't want to start the lump sum regular contribution argument here) you invested 2000 for the first year and lets say an overall growth of 10%, therefore you have 2200 going inton year 2. 

Do they take the 1% admin fee from the 200 profit or the 2200 toatal fund?


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## hattrick_12a

SPC100 said:


> QL's lack of information on their funds is a pet complaint of mine. To be fair they do state when the index they show a graph for is not the one they are tracking, but then they are misleading to show it.
> 
> My personal opinions
> -QL should at a minimum show their funds actual performance, so investors can look at effect of tracking error and fees. If it's created recently then it should still show information since it's conception. I think most of their funds have been their since 2003 or so when I started investing their.
> -It is appropriate to include an index in the litreature of a tracking product only if you aim to actually track that index, or you are comparing the performance of one index to another. Or making a particularly relevant point about it.
> -QL could choose more appropriate graphs and more detailed fund descriptions to avoid misleading people.....




I have to agree with this arguement but they do cleary state this, below, which is  good. 



> [broken link removed]
> 
> Cumulative Performance
> 01 Jan 1996 – 31 Dec 2005:
> 313.37%
> Average Annualised Performance
> 01 Jan 1996 – 31 Dec 2005:
> 15.2%
> SOURCE: Irish Stock Exchange. *Please note the index performance is for illustration purposes
> only and that the Celtic Freeway fund does not aim to track the index.* Past performance is
> not an indicator of future performance. Depending on economic conditions, unit prices may
> fall as well as rise.



However, How is one to know how the fund actually done over the last few years that it was available?

It also gives a list of some, or the majority of companies that are in the fund:    



> [broken link removed]
> The above major international companies represented 85.95% of the fund at the end of December 2005.



But, still how is one to know how the actual fund performed? 

I think I might need to start a new topic on this, but just wondering how the true performance of the actual fund can be obtained. 

And If it cannot be obtained, how does one go about, makining ones mind up, on how to split there investment between the various funds Quinn Freeway offer.

Thanks


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## Sarsfield

According to that pdf file, the Celtic Freeway aims to track the top 20 ISEQ companies.  This is the same as the ISEQ20 ETF.  So you can check a graph of the ETF performance for comparison.


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## nelly123

hattrick_12a said:


> so lets say you start this fund and just for aguement sake(don't want to start the lump sum regular contribution argument here) you invested 2000 for the first year and lets say an overall growth of 10%, therefore you have 2200 going inton year 2.
> 
> Do they take the 1% admin fee from the 200 profit or the 2200 toatal fund?


 
Good question, I was wondering the same. Does anybody know?
Also, as regards the new funds available (China,Japan, Emerging markets etc), is 1.5% admin charge good seeing as they are developing markets?
Thanks for any advice.


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## hmmm

nelly123 said:


> Good question, I was wondering the same. Does anybody know?
> Also, as regards the new funds available (China,Japan, Emerging markets etc), is 1.5% admin charge good seeing as they are developing markets?
> Thanks for any advice.


Usually these sort of charges are deducted from the entire holding. Can't speak for Quinn.

1.5% is not good, but is still better than anyone else in Ireland that I know of.


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## Humpback

nelly123 said:


> Also, as regards the new funds available (China,Japan, Emerging markets etc), is 1.5% admin charge good seeing as they are developing markets?


 
There's no real reason for the higher charge on these funds (except maybe the emerging markets because of the extra research needed etc.)

It's just a matter of checking around with similar funds to see what their charges are.

From what I can see, the Quinn Life China fund is basically just invested in a China iShares ETF. If you already have a stock portfolio, you can just purchase these ETF shares, and save yourself the 1.5% Quinn charges.


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## smiley

i agree with ronan....buy the etf, but buy a miniumum lump sum of the etf units, so that the minimum brokerage fees dont work out too excessive.

the quinn life fund seems to be based on the following.

[broken link removed]


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## hattrick_12a

ronan_d_john said:


> From what I can see, the Quinn Life China fund is basically just invested in a China iShares ETF. If you already have a stock portfolio, you can just purchase these ETF shares, and save yourself the 1.5% Quinn charges.


 
Can you tell what sort of commission you pay on these ETF shares, just for an example?

It is obviously less but how much so?

Thanks


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## ClubMan

Have you read these key posts?

Where to buy ETF, iShares & QQQ shares 
ISEQ Exchange Traded Fund (ETF) FAQ


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## Demps

Anyone invest in this recently - and out of interest what % breakdown in different markets are people going with?


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