TORTOLA, British Virgin Islands, June 1 /PRNewswire-Asia/ --
Tranen Capital is pleased to announce that it has signed an agreement with iFAST Financial Pte Ltd. in Singapore, in order to offer the Tranen Capital Alternative Investment Fund Ltd. to high net worth individuals via the iFAST Global Prestige (iGP) platform. It is expected that this program will be expanded in the near future, to include Hong Kong, Indonesia and India.
Tranen Capital offers a unique non-correlated Fund that seeks to deliver returns independent of the performance of other asset classes or traditional securities or commodities markets, as well as being substantially insulated from the impact of general global economic and market conditions. The Fund invests in the secondary market for life insurance in the United States, sometimes called the Life Settlements market, part of a larger, more popular market called Insurance Linked Securities. According to a report issued by Sanford Bernstein, the life settlements market is expected to grow from US$16 billion a year to over US$160 billion over the next several years, as Seniors, aged 65 and older, continue to look for ways to generate positive cash flow. One attractive way to do so is by the resale of life insurance policies by Seniors to third party investors, who pay a lump sum to the Senior-policy holder and assume annual premium payments, in exchange for becoming the policy beneficiary. Such resales generate more money for the Senior than would a surrender of the policy to the issuing insurance company for its cash surrender value. Tranen Capital acquires such policies and will either hold the policies until maturity or sell them to other market participants, typically hedge funds, banks or pension plans, institutions that need to fund contingent liabilities.
Tranen Capital will be a sponsor of the first ever Insurance Linked Securities conference, to be held in Hong Kong in October of this year, and will moderate a panel discussion about the life settlement asset class, designed in part to educate conference participants. The global demand for non-correlated assets certainly has increased as the global financial crisis expands, and this conference will introduce new products and ideas to the Asian financial markets.
