Initial offering period of a new fund query.

Sillychuckie

Hi, I have never invested in a fund from the day it started, but am thinking of doing so this coming week when Newstar launch their new global property fund.

Anyway, If you invest on day 1... and they continue to offer the funds to the public over a 2 week period at launch price, what is happening with your money during those 2 weeks? Would I be better to wait towards the end of the IPO?
Ta.

mutley74

good question.
neot hear about this fund from HL. Saying that there other property fund although widely advertised is lagging behind some other funds in performance. As this fund is managed by the same team as the Uk fund i will be watching this one but not eager. Personally seen better growth in equity funds rather in direct property.

http://www.newstaram.com/uk/individual-investor/fund-centre/fund-factsheets/oeics/international-property-fund/

Sillychuckie

Well, not to state the obvious, but commercial property is a rather different asset to 'equity funds'. You can't compare apples with potatoes! I have equity investments also, but commercial property still plays its part it anyones portfolio.

If my question had been a few weeks ago, and in relation to the new UK Equity Psigma Income fund, would you have answered differently?

If anyone else knows, please jump in. It seems silly to invest money if it is just going to sit there at the start price without budging for 3 weeks. Do I earn interest, does anything happen? What is my money doing (besides paying for the new star bubbly)?

mutley74

Sillychuckie wrote: »

Well, not to state the obvious, but commercial property is a rather different asset to 'equity funds'. You can't compare apples with potatoes! I have equity investments also, but commercial property still plays its part it anyones portfolio.

i hope i am a wise enough investor to notice that difference. But the end result is the what (well what i do) compare i,e is it 5, 8, 10% growth (numbers as examples). I think i would have done better investing my funds in a different fund rather than a newstar one just for the sake on diversification (my opinion).

Sillychuckie

atpug wrote: »

i hope i am a wise enough investor to notice that difference. But the end result is the what (well what i do) compare i,e is it 5, 8, 10% growth (numbers as examples). I think i would have done better investing my funds in a different fund rather than a newstar one just for the sake on diversification (my opinion).

And if the equity market takes a nose dive, I'll enjoy the fact I lost less. With an attitude like yours, no one would ever invest in bonds, guilds, cash...
Anyway, I didn't start this thread to debate the benefits of this fund.

I wan't to know about initial offering periods, and what happens to my money whilst I'm waiting for the period to end. I assume from your reply you are none the wiser.
Please move the thread back to the question at hand... still waiting for an answer. Thank you.

SeanW

The money is probably doing nothing. There might be a discount on the charges during the launch offer, so it may be best to invest during the end of the launch offer.

JDinho

Sillychuckie wrote: »

Hi, I have never invested in a fund from the day it started, but am thinking of doing so this coming week when Newstar launch their new global property fund.

Anyway, If you invest on day 1... and they continue to offer the funds to the public over a 2 week period at launch price, what is happening with your money during those 2 weeks? Would I be better to wait towards the end of the IPO?
Ta.

I understand your thought process but to loose any significant amount you would need to be investing a serious amount of money. In all honesty I don't thinks its worth worrying about. It is going to be a matter of a few basis points in all likelihood

I can understand the concept of 'loosing out' if you had raised the monies by selling another asset - however this would more likely have been a tactical allocation decision and you would have made the sale at a time when you felt comfortable.

RayWolfe

I am attracted to this fund and am thinking of putting a piece into it. (There are not too many global property funds, though there are a few IT's in this area.)
I will not go in now though as I want to see a bit of performance before I jump and as someone pointed out NS's UK property fund did pretty badly after the starting gun though it has picked up since.
Your money will obviously be idle if you invest now and the starting discount pales into insignificance if you are investing via H-L.

mutley74

Sillychuckie wrote: »

And if the equity market takes a nose dive, I'll enjoy the fact I lost less. With an attitude like yours, no one would ever invest in bonds, guilds, cash...
Anyway, I didn't start this thread to debate the benefits of this fund.

I wan't to know about initial offering periods, and what happens to my money whilst I'm waiting for the period to end. I assume from your reply you are none the wiser.
Please move the thread back to the question at hand... still waiting for an answer. Thank you.

Well thats what makes us all different. I am npt trying to debate where ypu put your cash thats up to you at the end of the day. But i did try to find some info to help ypu back on my 1st post.
If you wish to Thank me just press the thanks button.

If you still after an answer why not call Newstar direct...

noahveil

JDinho wrote: »

I can understand the concept of 'loosing out'

Something to do with archery ?

Or do you actually mean "losing" ?

JDinho

noahveil wrote: »

Something to do with archery ?

Or do you actually mean "losing" ?

Knowavail

Sorry for my spelling, you are correct. I have no nolegdge of archarry but I don't doubt you.

:rolleyes: