new ireland fund

K

KOW

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Back in 2007 after taking advise from well known financial advisers as part of a portfolio I invested 200k in 3 New Ireland funds 1.Evergreen 2.Triology 3.Innavator fund.

Roll on 2016 I now have the money in New Irelands European Equity fund.It is in this fund for just over one year. The fund is now worth around 167k.

Funds with other companies which made a conservative profit over the same period are cashed in and I plan to invest directly in shares myself.

Regarding the New Ireland fund I have continued to leave it there thinking that any further gains in the fund will be tax free up to my original investment of 200k. I have compared the Performance of similar funds with other providers and New Irelands is to put it simply awful.

The question I wish to ask. Should I leave the funds in position or cash in and invest elsewhere?
Thanks in Advance.
 
Hi DCD past performance is no indicator of future performance.

Given that you can get a tax-free return of €33k, you should leave it where it is until it is back to par.

Brendan
 
Maybe, but each Investor has to feel comfortable with the Investment and the costs that go with it. I've posted enough times that investing in ETFs could provide a better return to any Investor, rather than investing in funds. I am not qualified to offer investment advice, but am am able to on past experiences.
 
mercman said:
I've posted enough times that investing in ETFs could provide a better return to any Investor, rather than investing in funds.
Click to expand...

ETFs are funds (that's what the "F" stands for).

I would agree with Brendan that it makes sense for DCD to stick with the New Ireland unit linked product for the time being in these particular circumstances but perhaps consider switching to a balanced fund for greater diversification.
 
The costs associated with standard funds in the Irish market and far higher than ETFs. Have a look at the TER (total expense ratio) for ETFs versus the funds stated the OP was invested in. I think you will find a major difference in the costs,
 
Yes but you are ignoring the difference in tax.

The gains on the New Ireland fund are tax free until he returns to par. Whereas an ETF(even if it had no charges) would still be taxed on the gain.

I agree the correct advice in this situation is to bite your lip and stay put until you recover your original investment. Equally, the advice to switch to a more diversified New Ireland fund is also good advice in this situation.
 
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Nobody is arguing that Irish unit-linked funds are a cost effective investment option (although Irish insurers don't disclose TERs so you can't perform your suggested comparison). My suggestion is driven by DCD's tax position - not the relative cost effectiveness of one investment option over another.

Would I personally ever invest in an irish unit-linked fund outside of a pension wrapper? Not in a million years but DCD has already made his investment and has asked what he should do next.
 
In the funds that the OP is invested, there really is little chance of a recovery in those particular funds. Also it is a proven fact that funds with standard AMC charges eat in to the original Capital as well as any upside of the funds.

Sometimes the first loss might be the best loss. We have not been advised of the OP financial circumstances, so therefore they will need to get expert Financial advice to be advised of the best way forward.

If the TER is required for comparison purposes, then a firm of Actuairies will get the info at little cost. IMO the mistake has been made by investing in Irish based funds who refuse to disclose the full set of charges. It's amazing that if an investor is US based, then they can receive the list of charges, but for an Irish Investor they are told to swing for it.

Sarenco, you have stated it exactly as how it should be. Unless and until full disclosure on funds and costs are disclosed, all investors should join your line and wait one million years to invest in Irish funds.
 
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Hi DCC

You have to decide to you take the advice of Sarenco, Marc and me who do not like unit linked funds but who still think you should stay where you are until the losses are eliminated or that of mercman who has had a very bad personal experience of New Ireland.

Brendan
 
Many thanks for the feedback. I think I have learned the hard way regarding investing in Irish Funds. I do think that I may stay where I am until I recover my investment due to the tax situation.
The suggestion of a more diversified fund within New Ireland might be an option. Maybe the Evergreen fund?
Most of the research I have carried out suggests that European Equities are the way to go at the moment. Would really appreciate feedback in this area. Thanks. D
 
Forget the past. You have an asset that is worth €13,500...that €33,000 loss which means you can enjoy tax free future growth and avoid paying tax at 41%. Leaving that on the table would be crazy in my view.
 
Hi DCD

The Evergreen and Trilogy funds have a lot of property in them and the Trilogy fund had borrowing on top of that. You bought at the wrong time and it didn't work.

I agree with the rest (except mercman), it doesn't make any sense to move it to another company as any growth over €167k will be taxable in a new structure whereas it's tax free where it is.

New Ireland have a range on indexed funds that you can chose from, such as the Indexed All Equity Fund. The benchmark is split 50/50 between the FTSE Eurobloc Index and the FTSE All World Developed ex Eurobloc Index. They also have an S&P 500, NASDAQ, Nikkei 225 and the Global Emerging Markets Fund which mirrors the MSCI Emerging Markets Index.

You are better off switching to indexes than relying on active fund management.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
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