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IHT schemes boosted by life settlement fund’s out-performance, says Way Group


The Way Group says investors in its range of inheritance tax planning schemes have enjoyed a significant boost in recent months, helped by the exceptional month on month performance by

The Way Group says investors in its range of inheritance tax planning schemes have enjoyed a significant boost in recent months, helped by the exceptional month on month performance by partner EEA Fund Management’s life settlement fund.

Way linked with the UK life settlement fund manager at the end of 2008. EEA’s dollar class fund has recorded 38 successive months of positive returns.

‘There had been some evidence that IHT planning had been ‘put on hold’ as asset values fell last year but such times are the perfect opportunity to address the situation by placing assets in a suitable trust thus allowing the recovery in their value to occur outside the individual’s estate,’ says Way’s Eddie O’Gorman (pictured).

‘The undeniable logic of this has been tempered by the notion of exposing those assets to the equity market but this fund link has proved a comforting alternative.’

The EEA USD Class A fund grew by 9.32 per cent in 2008. As the fund is uncorrelated to market volatility, it is set to continue its steady climb through 2009.

‘The US life assurance market has developed in a different fashion to the UK and it is not uncommon for people to purchase a small number of plans in the knowledge that there is a thriving second hand market,’ says O’ Gorman.

‘So people will buy now with the intent of selling later to cover, say, healthcare needs. It is a system which works well: the benefit is that the client receives a return on the premiums they have paid in their lifetime.’

EEA has delivered consistent results since launching its fund at the end of 2005. It targets total returns of nine to ten per cent net of charges, with an investment benchmark to provide around eight per cent annual net return to investors.

‘It effectively means we can now offer the benefits of estate planning utilising one of the most effective investment vehicles currently operating in the market place,’ says O’Gorman. ‘More cautious investors alarmed by the fall out in equities since the credit crunch started to bite will take comfort from the year on year performance of the fund.’

The average life expectancy within the fund portfolio is 42 months, with EEA determining a wide spread of medical and life company risk.

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