LONDON, 28.10.09 - Managing Partners Limited, the boutique fund manager has revealed that the sterling share class in its Traded Policies Fund has outperformed the AAP life settlement Index since its launch.

The GBP Growth share class in the fund has returned 25.68% in the 30 months to 15 September 2009, compared with a 16.2% rise in the AAP Life Settlement Index, which tracks the performance of 19 funds around the world (excluding those domiciled in the US) that invest in traded life policies.

The index shows that funds that invest in traded life policies largely deliver steady, incremental returns. But the index showed a relatively sharp downturn in funds’ performance generally from October 2008. One reason for this was the publication of   the Valuation Basic Tables 2008, which extended life expectancies for the US population and resulted in many funds having to revalue the projected returns of their portfolios downwards. There was also a weakening of prices of TLPs on the open market because while supply of policies for sale remained strong, there were low investment levels generally because of the financial crisis. Several institutions that needed to raise money by selling assets also put their policies up for sale, pushing prices down further but also creating a window of opportunity for buyers.

Jeremy Leach, Managing Director, MPL said: “Our Traded Policies Fund was unaffected by the VBT tables because we have always factored in rising life expectancies anyway so there was no shock to the system. In December 2008, we took the decision to extend all life expectancies in our Traded Policies Fund by 25% and to smooth in the impact of this adjustment towards the estimated maturity date of each policy.

The outperformance of our fund is also testament to our approach of using prudent actuarial analysis to value policies. The Traded Policies Fund is able to deliver steady, incremental returns that are uncorrelated to other financial asset classes.”

MPL offers institutional and retail share classes in U.S. dollar, Euro, GB pound, Japanese yen and Swedish krona.

The minimum direct investment in the fund is £35,000 but the fund can also be accessed via insurance bonds or SIPPs for £2,500. The fund has also received HMRC distributor status.

For further information on Managing Partners Limited range of funds, call 0203 397 0525 or visit (www.managing-partners.com).

This entry was posted on Wednesday, October 28th, 2009 at 9:11 am and is filed under Managing Partners News. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.