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Fund firms urge advisers to look at life settlements

Fund firms investing in life settlements say advisers should be looking at the sector for diversified absolute returns during the current credit crisis and beyond.

US life settlement specialist Policy Selection Limited says its open-ended assured fund invests in US senior life settlement policies using a medium to long-term strategy.

Its sterling B and sterling C classes are currently yielding 10.24 per cent and 10.23 per cent annualised returns respectively since their launches in 2005 and 2004.

EEA’s life settlement fund is delivering a return of 10.8 per cent net of charges over 12 months to the end of October 2008 and has provided 34 consecutive months of positive growth.

PSL finance director Andrew Walters says: “We are entirely uncorrelated to traditional asset classes and in a climate where share prices are tumbling and hedge funds and other traditional investments suffering as a result, we are in a positively low-risk category.”

Informed Choice director Martin Bamford says: ” I can see in the very short-term the des-ire for diversification and an asset class which is delivering positive return. It is clearly going to look good over the last 12 months but over the longer term I question its role in a well diversified and traditional investment portfolio.”

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