Your opinion on this European Fund

Discussion in 'ETFs' started by Chuck Krug, Feb 14, 2009.

  1. it's not an ETF, but I didn't know where to post.

    Any opinions on this: PEL Target Eight Bis.
    It's a fund managed by an insurance company called PEL (private Estate Life).
    At the conception date July 2007 it had a NAV of 100, now it's at 40 (40.23 to be precise.)
    But here's the kicker: they pay 3x 8% coupons on the original NAV. The first 1 was paid out July 2008. The second coupon is going to be paid out next July.
    So if I buy 1000 units at 40.23 each for a total of 40230 euros, I receive 8000 euros this July and 8000 euros next July. Then I'll sell it in August 2010. This would mean a yield of 40% in +- 18 months. Only danger at first glance seems that the NAV might be lower then.
    Any opinions?
     
  2. anyone?