• MPL sees window of opportunity as credit crunch forces buyers out of the market

7th November 2008 – Managing Partners Limited, the boutique fund manager, has announced a 10.22% annual return* on its Traded Policies Fund. This stands in stark contrast to the falling return for cash savers prompted by the 1.5% basis point cut by the Bank of England yesterday.

The BoE’s rate cut was a response to the credit crunch, which has even created a window of opportunity to invest in traded life policies (TLPs). This is because several large financial institutions that have been substantial buyers of TLPs to date, including Lehman Brothers and Credit Suisse, have been pulling out of the market to preserve much-needed liquid assets. But the supply of new policies has continued unabated, so with fewer bidders in the market, buyers such as MPL can buy policies at discounted rates.

TLPs are United States-issued whole of 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 $20bn in 2007.

To highlight the opportunities available, MPL is offering a 3% extra allocation on all share classes in its Traded Policies Fund until 15 December. Share classes available include sterling, Euro and dollar Growth classes for retail investors and sterling, euro and dollar institutional classes.

Jeremy Leach, Managing Director of MPL, said: “There can’t be many asset classes, if any, that have achieved double-digit returns over the last year or so. TLP funds can deliver steady predictable returns year in, year out, and yesterday’s rate cut was a stark reminder of how returns are crashing elsewhere. Not only have TLPs proved themselves to be immune to the turbulence seen on financial markets, they have offered investors the chance to enhance their returns even further by providing a golden opportunity to get into this asset class.”

While TLPs carry the risk that it is unknown when the lives assured will die, the exact pay-outs are known so 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.

For further information, please visit the website: www.managing-partners.com.

..ends..

Notes to Editors
*The GBP Growth share class in the Traded Policies Fund has returned 10.22% net of fees over the year to October 15, 2008. Source: MPL

Managing Partners Limited (MPL) is a multi-disciplined investment company that specializes in managing alternative asset classes for institutions and sophisticated investors. It is a market leader in managing funds that invest in traded policies, an asset class that is renowned for its low-risk, inherent guarantees and balanced growth characteristics.

The board of MPL has more than 70 years’ collective experience in asset management.

MPL is regulated by the Financial Services Authority and is recognized by the Cayman Islands Monetary Authority as an asset manager, where it manages a number of collective investment schemes and regulated mutual funds with total assets in excess of US$300 million.

The appointed actuary for the Traded Policies Fund is Milliman, one of the world’s largest independent actuarial and consulting firms, employing more than 2,000 professionals.

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