Irish Based Investment Funds & Leaving Euro

F

fionn2011

Registered User
Messages
27
Question

If Ireland were to leave euro or euro falls apart, how would this affect investment funds in ireland owned by irish residents, either from irish owned or foreign owned life companies?

Presumably if you had 10K euro in say international equities pre ireland leaving euro, it would be worth more than 10K punt nuas reflecting the underlying value of the equities?
 

i checked this with rabbo direct , they told me once you buy into a fund through an irish bank , that fund is valued in irelands currency so therefore , were we to leave the euro , the fund value would devalue accordingly , i would love to invest in several of rabbobanks funds but wont due to the threat of us leaving the euro , instead im buying ETF,S which are valued in dollars
 
farmerette said:
im aware of that , im buyin in ones which are based in dollars
Click to expand...
The base currency of the ETF is irrelevant. It’s just the currency in which profits / loss of the fund is expressed. If an EUR investor invests in an ETF with a base currency in e.g. USD, the return to the investor is the [change in the value of the assets of the fund in the currency(ies) in which they are denominated] + [change in the exchange rate of the currency(ies) in which the assets are denominated vs the USD] + [change in the exchange rate of the USD vs EUR]. The USD bits gets balanced out so the return is the [change in the assets of the fund] + [change in the exchange rate of the currency(ies) in which the assets of the fund are denominated vs the EUR]. If IE were to exit the EUR the return to an IE investor would be [change in the assets of the fund] + [change in the exchange rate of the currency(ies) in which the assets are denominated vs the paddypound]. Presumably the same would apply to IE based unit funds.
 

sorry , didnt get to spec savers , what with being snowed in and all
 
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