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UK life settlement fund continues to deliver growth, says Policy Selection

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The Assured Fund, one of the UK’s biggest life settlement products, has now delivered 48 consecutive months of positive returns since going live in January 2005, according to the fund’s

The Assured Fund, one of the UK’s biggest life settlement products, has now delivered 48 consecutive months of positive returns since going live in January 2005, according to the fund’s manager Policy Selection.

The fund’s Sterling Class B – available for investment by private retail investors – has outperformed rival asset classes such as equities, bonds and gilts over the past four years, with an average return of just over ten per cent per year.

This means a GBP100,000 investment would have grown to GBP148,000 since January 2005.

In the 12 months to the end of December 2008, the Sterling B share class achieved a return of 10.4 per cent, compared to the FTSE 100 Index which was down 31.3 per cent.

Property – both privately owned and commercial – saw values fall by up to 30 per cent in some, while many major UK corporates reported a significant downturn in the fortunes of with profits policies.

‘Wherever you look the story is broadly similar in terms of negative returns, apart from life settlements,’ says Assured Fund director Andrew Walters (pictured).

‘Where do savers have to turn? Deposit accounts pay precisely nothing, certainly not when inflation is taken into account: we are currently at a point where saving in an ordinary High Street account is losing money, given the one per cent base rate and inflationary pressures.’

The fund invests in US life assurance policies sold on the second hand traded market by elderly US citizens – the typical age of policy holders is between 75 and 85. Reflecting similar products in the UK, the US-based policies carry a guaranteed death benefit and the sum assured.

When the policyholder dies, the full sum assured is realised, with the Assured Fund then receiving the proceeds.

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