MPL Launches Sterling Share Class of Traded Life Policy Fund

Managing Partners (MPL), the Cayman Islands-based fund management group that invests in traded life policies, has launched a new sterling share class of its Traded Policies portfolio, the GBP Growth Class.

Unlike existing share classes, which are available only to institutional investors, the GBP Growth Class will allow investments from wrap providers and insurance companies, allowing independent financial advisers and their clients to access funds previously unavailable to them.

The Traded Policies Limited fund is available in sterling, euros and US dollars and targets an annual return of 9 per cent net of all charges. The new class, which will have an initial offering period up to March 15, is suitable for high net worth individuals and investment through wraps, platforms, self-invested personal pensions and personal portfolio bonds.

The structure of the class is 95 per cent allocation and 1 per cent annual management charge. The commission is 4 per cent with 0.5 per cent trail, and the commission may be rebated to increase the allocation up to 99 per cent. During the initial offer period, MPL will also offer an additional 1 per cent allocation.

The Traded Policies fund invests in US-issued life assurance policies sold before the maturity date to allow the original owner to enjoy some of the benefits during their lifetime. MPL invests in life settlements, which are policies held by people aged over 65. By acquiring a broad spread of policies and using actuarial calculations of the average life expectancy of the original policyholders, managers can deliver a predictable stream of returns.

Says MPL managing director Jeremy Leach: ‘The TLP market has seen huge growth from USD50m in 1990 to USD10bn in 2006. We are delighted to offer our TLP products to a wider range of investors than were previously able to access them. TLPs make a great low-risk alternative for investors looking for high growth potential.

‘Launched in 2004, Traded Policies has achieved an extremely good track record due to its very low total earnings ratio. Between August 2004 and December 2006, the USD Institutional Class of shares returned 25.15 per cent. IFAs now have the opportunity of accessing the fund for the first time as the new share class will accept subscriptions from wrap, SiPP and PPB providers.’

Managing Partners specializes in managing alternative asset classes for institutions and sophisticated investors, ands notably in managing funds that invest in traded policies, an asset class that offers low risk, inherent guarantees and balanced growth characteristics.

MPL is recognized as an asset manager by the Cayman Islands Monetary Authority, the financial regulator in Cayman, where it manages various collective investment schemes and regulated mutual funds with total assets exceeding USD100 million.

Source: Hedgeweek.com