Advisers have warmed to the benefits of Life Settlements Wholesale Fund as a “true portfolio diversifier and for its low volatility”, according to Anissa Cavallo, managing director of distributor BDM Direct.
The fund, which invests in the life settlements market in the United States, has grown by 23.16 per cent for the 10 months to April 30, 2009.
The fund has attracted over $1 billion in investment from institutional, international and retail investors since its launch in Australia in 2006.
Cavallo said it has a simple structure that purchases life insurance policies at a discount to face value and a proven track record underpinned by an extremely sophisticated trading market in the US.
“The fund differentiates itself via a unit trust structure, which unlike other life settlement investments offers investors monthly liquidity and unit price growth.
“It is structured so the unit price grows by the aggregation of the increased value each month of each policy, thus removing the dependence on policy maturities to generate returns for investors.”
