-- Low Market Correlation and Predictable Returns Underpins Interest From Investors
CHESTER, England, Otc. 6 /Xinhua-PRNewswire/ --
Surrenda-link Investment Management, Europe's premier traded life policy investment specialist(1), has received soaring levels of enquiries from institutional investors regarding US Life Settlement investments. The company attributes the accelerated growth in enquiry levels to the credit crunch and the ensuing 'flight to safety'.
As a predictable, low market-correlated investment, Life Settlements are proving to be particularly attractive given current market turbulence. Surrenda-link forecasts a boom in Life Settlement investment for the rest of 2008 and throughout 2009.
Life Settlements are life insurance policies issued by US life companies insuring mainly U.S. lives, which are traded in the secondary market. Investors buy the legal rights to the policy and pay premiums before making a return by collecting the entire death benefit of the policy upon the death of the life insured.
The key determinant of investor return is accurately estimating the life expectancy of the insured when purchasing the policy. With expert actuarially-based asset valuation and acquisition, coupled with prudent policy diversification, the investment performance of Surrenda-link-advised Life Settlement portfolios are largely immune from the effects of the credit crunch.
The Senior Life Settlement market has grown from $0 in the mid-1990s(2) to an estimated $15bn in 2008(3). The market potential is thought to be $160bn "over the next several years(4)".
Frank Creighton, Surrenda-link's Executive Manager, Marketing & Communication, said: "The current high level of risk aversion in the market has resulted in booming interest in US Life Settlements. Institutional investors are increasingly recognising that Life Settlement funds can withstand volatility in the capital markets. The time is now right for this alternative 'safe haven' asset."
NOTES TO EDITORS
1 - Surrenda-link is the premier full service traded life policy specialist in Europe: it is the largest and most established (GBP1bn FUMA (31 December 2007), 150 employees, established 1990).
2 & 4 - Bernstein Research Call, 4 March 2005
3 - Life Insurance Settlement Association (LISA) Spring Conference, 14 May 2008
ABOUT SURRENDA-LINK INVESTMENT MANAGEMENT
Surrenda-link Investment Management the largest and most established full service traded life policy specialist in Europe. The company is expert on predictable, low market-correlated investments based on traded life policy and longevity based products. These products provide an alternative to investment in traditional capital markets.
Surrenda-link designs, builds, advises and manages funds for institutional investors worldwide. In partnership with leading institutions, a range of predictable, low market-correlated investments has been developed. Primarily, Surrenda-link deals with U.S. Life Settlements and UK endowment policies (known as TEPs - Traded Endowment Policies).
Funds advised by Surrenda-link benefit from a unique value-based pricing system, delivering higher average returns than cash and bonds with lower average risk than equities and property.
Having inaugurated the large scale Traded Endowment Policy market almost 20 years ago, Surrenda-link has developed into Europe's leading traded life investment specialists and is a major player in the U.S. traded life policy market.
Surrenda-link advised on the following innovations:
- the world's first TEP investment fund (launched 1992)
- First offshore TEP fund (OEIC) (launched 1996)
- First hybrid TEP/Property fund (launched 1999)
- First ever London Stock Exchange listed Life Settlement fund (listed 2004).
Surrenda-link funds under management and advice total GBP1.029 billion (31 December 2007).
Potential institutional investors should contact: invest@slinvest.co.uk
