You are here: cherry > Press releases for June 2010 > Secured Life Fund launches in UK market – new income producing asset class offering fixed annual returns

14 June 2010

5, 7 & 10 year Bonds paying from 8 – 9 % p/a Listed on the Irish Stock Exchange Well known institutions and US based specialist advisers Non correlation to traditional investment classes Stable and consistent returns Min €250k investment – for institutional and pension fund investors A NEW income producing asset class with the potential to pay up to 9 per cent a year has been launched in the UK. The Secured Life Fund, designed for large pension fund and institutional investors, is constructed to produce regular cash flows without the volatility of stock markets or other traditional benchmarks. Investors into the fund will be able to choose from either a 5, 7 or 10 year investment periods, each of which will provide fixed returns paid annually in arrears. Returns range from 8% for the five year bond, 8.5 % over 7 years, rising to 9% for the 10 year bond. Income is generated by investing in a combination of cash, cash equivalent assets and principally through the repayment of loans collateralised by US life insurance policies. The minimum investment is currently Euro 250,000, but there are plans to roll out the Fund for smaller sum investments via a UK plan manager. “The Secured Life Fund is a new concept for UK institutional investors, but has worked extremely well in the US, where the asset class was pioneered,” said finance director Andrew Walters. “A major attraction for the ‘big ticket’ institutional investors is the fact that they can enjoy stable and consistent returns which currently outgun most other asset classes. “Given the continuing muted returns from equities and other income producing vehicles such as corporate bonds and gilts, our product is perfectly suited to major investors wanting certainty of returns over given periods,” he said. “It is a tried and tested model, listed on the Irish Stock Exchange, and properly vetted by medical oncologists and other medical school faculty physicians, acting as independent contractors are key to the underwriting process. “Insurance companies providing the client’s policy must be rated ‘A’ or better by Standard & Poor’s, and of course the policy must mature on the death of the potential customer,” added Walters. Please download the pdf below for further information

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