I've done all the Collector quests except this one. The reason I haven't is that Alla does not show this item as having a focus effect.
I would figure it would have at least Improved Damage II, as that is the only focus effect that the other Collector quest items lack.
If not, then this item really sucks. It is not possible to get a chill dagger until your 30's, and even on the Newbie server, where I started a completely untwinked toon, there are a zillion better weapons that you can get, way before this is available.