You are here: cherry > Press releases for November 2010 > An uncertain future for bonds and equities help position of Secured Life Fund as pre-eminent attraction for major institutionals - fixed annual returns underpin pension funds

02 November 2010

5, 7 & 10 year Bonds paying from 7.5 – 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 MUTED outlook for real returns from equity and bond investments (IMA, October 2010) has helped to underpin the attractions of steady, fixed income returns from newcomer The Secured Life Fund (SLF) Designed for large pension fund and institutional investors, SLF 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 7.5% for the five year bond, 8% over 7 years, rising to 9% for the 10 year bond. “Our higher than average coupon returns, plus the fact that we are non-correlated to global markets means there is no volatility – a crucial factor given the topsy turvy state of the current equity investment climate. “Holding bonds has proved attractive to institutions as a means of stabilising their balance sheet. However the chase for yield may result in the accumulation of corporate debt at the riskier end of the market,” said Finance Director Andrew Walters. “For an institutional fund manager looking for that elusive, rock steady underpinning, SLF ticks all the right boxes. “Despite the reported growth in the economy, the threat of a ‘double dip’ recession has not been eliminated, and in such circumstance the chance of corporate bond default would be very real” SLF works 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 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 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 document below to view full release

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