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Keydata defends strategy as Tenet shuns income bond

Tenet is refusing to sell Keydata’s secure income bond, which invests in US traded life policies, under an agreement reached with its PI insurers.

The group, which owns networks Interdependence and M&E with over 1,150 IFAs, claims the product’s links to the US traded life market mean it is based on unproven actuarial assumptions and a market which has seen a number of cases of fraud.

Keydata head of commu- nications Roddi Vaughan-Thomas says he disagrees the term “secure” is misleading. The fund is based on a portfolio that has been running for four-and-a-half years and Keydata says it is offering an institutional product to retail investors.

He says policies underlying the fund are corporate protection policies and not viaticals, as in the collapse of Shepherds’ 26m offshore traded life fund in June. He says as the product invests in corporate protection policies where the individual insured is not the beneficiary, fraud “simply cannot happen”.

Vaughan-Thomas says: “We have done more due diligence on this product than any other launch. Some IFAs appear to be Luddites in accepting a professionally put-together product offering a professionally created asset class. People should look at it without pre-judging.”

Tenet spokeswoman Emma Bull says: “If our researchers have come to this agreement with our PI insurers, we have nothing more to add.”

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