Quinn Life Euro Freeway Bid Price

G

Gruntler

Guest
Folks,
I have a lump sum to invest and for the moment don't want the hassle of investing directly in shares. I have been watching the bid price for the Quinn Euro Freeway tracker fund over the last few months. On Friday the bid price for that fund was 102 cents.

I have two questions for the forum:
1. I have read that unit prices when first offered usually start at 100 cents/pence per unit. If this is the case for the Euro Freeway fund then its value as of Friday is very close to its original value in 1996 when it first launched?
2. And thus the Euro Freeway fund should be a good long-term investment if the answer to the first question is yes.
 
You seem to be attempting to time the market which is not a great idea.
Nobody can say how this fund or the markets will perform. However equities tend to give good returns over the long term.
 
Point received and accepted.
But if my point about the initial (1996) and current (2008) bid price is valid then it is striking that the value of a unit in this fund is the same as it was 12 years ago --- to my untutored mind this seems like travelling back in time and presents great value if the market goes up over the long term.
 
Gruntler said:
it is striking that the value of a unit in this fund is the same as it was 12 years ago
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Actually the nominal price is the same and the real price is lower. But that, of itself, says nothing about value. The value is determined by the underlying assets.
to my untutored mind this seems like travelling back in time and presents great value if the market goes up over the long term.
Click to expand...
I would not look at it this way.
 
Gruntler said:
it is striking that the value of a unit in this fund is the same as it was 12 years ago
Click to expand...
You well may have identified something here. This ties in with an article in last Saturday’s UK Times http://business.timesonline.co.uk/tol/business/markets/article4488650.ece that, based on p/e ratio, European shares are at their lowest for 25 years. Along with your point on the price of the QL Eurostoxx50 tracker this could well indicate a buying opportunity for anyone whose portfolio is currently underweight in euro-denominated stocks.
 
by the looks of it the OP is planning to put all the investment into the Quinn Euro Freeway tracker fund, it might represent value...who know as we have no idea what other skeletons are still hiding in closets...as Clubman said, timing the market is not a good idea. QL might be worth investing in but it will be medium to long term before you see any gains and it might be lower than 102 in the next 6 months. I will invest the lump sum in a number of different funds covering differnent regions and asset classes so as to minimise the risk

Gruntler, if you invest all of your lump sum into this fund then if the market tanks even further your investment will be hit hard but by invest in US, JPY, BRIC or other asset classes such as gold, cash, mining, tech oil etc you are spreading the risk thinner thus miminising your exposure to any one sector/region which in theory should help cut your losses....check out ishares and other EFT providers as their fees are generally lower than QL while providing similiar products
 
QL site says that the performance of the Euro Freeway fund to 31/7/08 was approx. 191%. €1000 invested in 1996 has almost trebled. How can the bid price at 102 cent be nearly the same as the launch price? Does anyone know what the unit price was in 1996, converted into Euro/cent?

Sorry if I'm being obtuse.

Slim
 

Yes, this would be very interesting info. Something doesn't seem to add up here, on the face of things at least....
 
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