# Liberty Asset Management Flagship Fund



## limerickmick (5 Mar 2006)

hi all, anybody enlighten me as to the advantages/disadvantages of the above fund


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## CCOVICH (5 Mar 2006)

*Re: liberty asset mgt-flagship fund*

Blurb on website here.

The below is just my opinion based on a quick look at the site.

Advantages:

100% capital guarantee at maturity   
100% participation   
100% allocation   
No bid offer spread
Disadvantages:

Fixed term   
Minimum investment €25k   
Any investment of less than €25k (discretionary) attracts a 1% charge   
Early encashment penalty   
Management charge of 1.95%


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## limerickmick (5 Mar 2006)

*Re: liberty asset mgt-flagship fund*

thanks a lot ccovich.spoke to one of their guys last week who  stated that it would be possible to obtain a loan for 90k to invest at 3.9% and that passive income would almost cover the loan repayment


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## CCOVICH (5 Mar 2006)

*Re: liberty asset mgt-flagship fund*



			
				limerickmick said:
			
		

> thanks a lot ccovich.spoke to one of their guys last week who stated that it would be possible to obtain a loan for 90k to invest at 3.9% and that passive income would almost cover the loan repayment


I wouldn't take advice from a Liberty salesperson.  

What 'passive income' is he referring to?

What is his definition of 'almost'?

Is the rate on the loan fixed at 3.9%?

Borrowing to invest is risky and certainly should not be undertaken on the 'advice' of a Liberty salesperson. Bear in mind that he probably has a vested interest in getting you to borrow from specific lender.

If you are considering an investment of €90k, I would be inclined to seek independent financial advice.


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## limerickmick (5 Mar 2006)

*Re: liberty asset mgt-flagship fund*

passive income = rents from property in sum of 3.5%

thanks for advice


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## CCOVICH (5 Mar 2006)

*Re: liberty asset mgt-flagship fund*



			
				limerickmick said:
			
		

> passive income = rents from property in sum of 3.5%



So does this mean that you would be investing 100% in property?
Is the 3.5% guaranteed?  I don't see any info on taking income, other than by encashment.

Bear in mind that you will also be paying 1.95% a year in management charges, as well as interest on the loan.


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## jpd (5 Mar 2006)

*Re: liberty asset mgt-flagship fund*

Annual Management charges of 1.95% are higher than other funds - eq Quinn Life at 1% - what are you getting extra for the higher charges ?


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## BRICKTOP (6 Mar 2006)

*Re: liberty asset mgt-flagship fund*

Capital guarantee and active fund management.


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## CCOVICH (6 Mar 2006)

*Re: liberty asset mgt-flagship fund*

Some would argue that paying for active fund management is a waste of money.

I do agree that the Liberty product _appears_ that it justifies a higher charge than Quinn Life, but that will remain an opinion for the next 6 years!


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## ClubMan (6 Mar 2006)

*Re: liberty asset mgt-flagship fund*



			
				BRICKTOP said:
			
		

> Capital guarantee and active fund management.


So it's a tracker bond?


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## BRICKTOP (6 Mar 2006)

*Re: liberty asset mgt-flagship fund*



			
				ClubMan said:
			
		

> So it's a tracker bond?


 
No. From reading the blurb its a multimanager fund of funds.


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## ClubMan (6 Mar 2006)

*Re: liberty asset mgt-flagship fund*

What underwrites the capital guarantee? If it's a cash/bond fund or an future/option with the rest in funds which *may *deliver *some *returns then it's a tracker bond in all but name as far as I can see. If it looks like a duck etc...


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## Ric (6 Mar 2006)

*Re: liberty asset mgt-flagship fund*

Clubman you would benefit by research before comment. The guarantee is underwritten by the issuing Life Office. It is not a guaranteed equity deposit account, derivatives and deposits are not used.


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## ClubMan (6 Mar 2006)

*Re: liberty asset mgt-flagship fund*

Thanks - please note the two "ifs" in my post above. They indicate that I was not sure and was seeking clarification.


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## CCOVICH (6 Mar 2006)

*Re: liberty asset mgt-flagship fund*

Please keep this thread on topic, namely the Liberty Asset Management Flagship Fund.

Thanks.


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## markowitzman (8 Mar 2006)

*Re: liberty asset mgt-flagship fund*

I personally would buy the corresponding etfs with a discount broker to massively reduce charges. 1.95% per annum too much in my book.
Had a look at catalogue.........hard sell stuff!
Good old Warren Buffet gets a mention!
Hate how companies use master investors to help sell their wares.
Buffet is a focused investor and not a broadly diversified investor despite the holdings of berkshire hathaway.
Dont think Warren is a buyer!


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## mobcon (24 Mar 2006)

*Re: liberty asset mgt-flagship fund*

who are liberty asset management are they the same as the liberty pyramid scheme


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## bearishbull (24 Mar 2006)

*Re: liberty asset mgt-flagship fund*



			
				mobcon said:
			
		

> who are liberty asset management are they the same as the liberty pyramid scheme


no not the same.i actually heard a guy on radio from liberty asset management who rang up to clarify that his company had nothing to do with the pyramid schemes .


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## bearishbull (24 Mar 2006)

*Re: liberty asset mgt-flagship fund*

had a brief look at the prospectus for libertys fund,a fund of funds seems attractive for diversification of systemic and stock specific risk as well as the risk of a dodgy fund manager! the charges would be a concern as would be the amount in property.


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## G123 (21 Jul 2006)

Anyone notice that that this bond received an 8 out of 10 from the Sindo?... the same paper that gave it a 1 out of 10 last year! 

Anyone feel that these newspaper 'experts' should be made to justify their opinions - good or bad?


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## diarmuidc (21 Jul 2006)

G123 said:
			
		

> newspaper 'experts'



"There are two kinds of investment experts, the ones who don't know what the market is going to do and the ones who don't know, they don't know"


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## kellyiom (21 Jul 2006)

that's a fair point- even we on this forum practise some sort of self-censorship but there's seemingly little redress in the press, anyway back to topic. I'd ask how much is the capital guarantee worth from friends first. Aren't they part of eureko? so they're rated at A- by S&P and anyway if they're that good at picking managers, why do you need the guarantee?


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## Sunny (24 Jul 2006)

kellyiom said:
			
		

> I'd ask how much is the capital guarantee worth from friends first. Aren't they part of eureko? so they're rated at A- by S&P and anyway if they're that good at picking managers, why do you need the guarantee?


 
I'd agree. When I see the words "capital guarantee" and "100 % participation" I get a bit suspicious. It means that they are not actually physically locking in your guarantee through the purchase of a zero coupon bond for example. They are simply underwriting it with a financial institution rated A- (4th lowest investment grade rating) and charging you for the privilage. I would ask them exactly how much they were charging for this and if there is collateral involved.


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