The Market for Traded Life Policies report notes that the combined assets of the five largest funds distributed in the UK grew from £271.7m on November 1 2007 to £416.7m in 12 months. It estimates that retail investment into these funds rose from £67.9m to £104.1m or 53 per cent.
TLPs are US-issued, whole of life assurance policies sold before the maturity date to allow the original owner to access investments during their lifetime.
Managing Partners Limited has also seen a rise in its TLPs from £26m to £67.5m or 160 per cent over the same period, of which a quarter has come from retail investors.
MPL Managing Director Jeremy Leach says: “The market events of the last year have proven the real value of TLP funds’ ability to deliver steady, predictable returns, no matter what is happening to other asset classes.
“As more retail investors and their financial advisers appreciate the benefits of TLPs then we can expect there to be even more significant increases in investment into them in 2009.”