Allocation of Funds In Quinn Life Freeway

T

taytoman

Registered User
Messages
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I originally invested 20 K in Quinn Life Freeway Funds in 2007, and it has now dropped to 13k. I am well aware of the fluctations of the stock market/ getting out now crystallises losses etc / need for long term investment/ leaving fund now means any gains on 13K in new product / ETF are subject to 25% tax etc The money is saved childrens allowances, that will be needed for kids education in 10 years time+

I want to allocate money across funds so that I can eventually make up losses, so I don;t want to be too conservative or too risky either. Concerned re value of euro.

What do u think of this middle ground (?) allocation-
20% EuroStocks
20% Euro Bonds
30% US Stocks
10% UK Stocks
10% Japan
10% Emerging
 
Not a bad allocation. What you are investing in is 20% euro denominated developed market equities (i.e. Eurostocks); 50% foreign developed market equities (i.e. US, UK, JP), 10% emerging market equities and 20% euro government debt (i.e. Eurobonds). So 60% of your investment is exposed to foreign currency risk. This might not be problem if you have years to go before you cash in (to allow currency fluctuations to even out) but if you’ve a short investment horizon you might wish to re-visit this allocation. Also are you happy with 10% to JP? Personally, I’m invested in several QL funds, but I’ll never invest in the QL bond fund as all they say is that it invests in “government bonds issued and backed by governments, which have the Euro as their currency”, i.e. so you’ve no idea on maturities, who is actually issuing the bonds, etc. or even what is the strategy of the fund. So we’ve no real idea what is does. Also, the 50:50 allocation between euro equities and euro government debt would indicate a conservative investor (if you are investing in euro bonds to diversify from volatility in euro equities), but this may not be consistent with putting 60% in foreign equities where you are taking on currency risk in addition to the risk of investing in these markets. [Disclaimer: The above is comment / observation and is not a recommendation to follow any particular investment strategy or to buy / not buy any particular fund or stock.]
 
Thank you for your comments
Actually what I ran with in the end was 25% eurostocks and 5% japan, otherwise as described;
I agree there is no info on the bond fund
Interestingly, i looked into the emerging markets, and it is very diverse and is as much pacific rim as emerging markets
 
PMU said:
I think your decision to reduce the allocation to JP was prudent, especially considering this piece (that appeared after my post) in the Telegraph http://www.telegraph.co.uk/finance/...t-time-for-investors-to-give-up-on-Japan.html
Click to expand...

Whilst its volotile, I don't read too much into what the daily press say on Japan. Best to take with a pinch of salt anything in the daily papers with the exception of the FT perhaps.

The market has gone nowhere for 20 years. I like to buy assets that are cheap and out of favour.

This is the most hated asset class in the world. It has dissapointed so many over people over the years.

Most firms are trading on a P/book of less than 1. The P/E has gone from 50-100 down to typically 16 times earnings.

Dividends are rising and earnings improving. Firms are cash rich in Japan and offers a safer way into the Chinese growth story than any China stocks.

I emailed Marc Faber earlier this year asking him what phase of his 'market cycle' Japan was in ([broken link removed]).

He kindly replied Phase 0. It doesnt get any more hated or any cheaper than Japan IMO.

Once Japanese Inflation takes off then the local market will drop them heavily for the stock market again.
 
Can I just ask a q about QL's Celtic Free Way Fund, it says in writing that ''the Celtic Freeway fund does not aim to track the index''.....I don't fully get this? I thought that was the whole point of the fund?
 
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