The launch of a new Traded Life Policy Fund Index shows strong growth for this asset class and points to a doubling of the market in just over a year.  The Index will track the size of five leading funds specialising in Traded Life Policies (TLPs) on a quarterly basis and it has been developed by the fund manager Managing Partners Limited.  

In the 12 months to 1^st November 2007, the Index shows that the collective size of the funds it monitors grew by a staggering 108.5%.  Their combined assets under management increased from $194.35 million to $405.202 million, a rise of $210.85 million or around $17.57 million a month.  TLPs are United States-issued life assurance policies sold before the maturity date to allow the original owner to enjoy some of the benefits during their lifetime.  TLPs are purchased at a discount from their maturity value, which in the majority of cases is fixed at outset, which means that they are guaranteed to rise in value. The TLP market has seen huge growth from $50m in 1990 to well over $20bn now.   MPL says that while TLPs carry the risk that it is unknown when the lives assured will die, the key attraction of a TLP fund is that with the right diversification and actuarial analysis, they can be used to deliver steady, predictable returns. Because of this high degree of certainty and their solid underlying value, it is possible for products that invest in them to secure a substantial degree of gearing to enhance returns and initial allocation rates.  Funds that invest in TLPs also offer strong diversification benefits in that they have a very low correlation with equities or bonds. Jeremy Leach Managing Director of MPL, commented:  “A combination of the current market volatility and increased opportunities in the traded life policy market have made this asset class all the more attractive.  TLPs provide steady, predictable and attractive returns, which both institutional and retail investors are finding hard to ignore.  Indeed, our Sterling Growth Class (the retail share class) of Traded Policies Fund has delivered annualised returns of 9.5% since its launch in March 2007”  During the 12 months to 1^st November 2007, Managing Partners Limited saw a 190.18% increase in the amount of money invested in its traded life policy funds.  It estimates that 75% of the money invested in its funds is from institutional investors, and 25% from retail investors. 

For further information on Managing Partners Limited range of funds, call 0207- 965- 4631 or visit (www.managing-partners.com). 

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