PCE Investors has received regulatory approval from the Irish Financial Regulator for The Strategic Life Settlement Fund, a limited liquidity investment company with variable capital incorporated with limited liability in Ireland.
The qualifying investor fund targets a minimum annual USD-based return of eight to 11 per cent net of fund expenses, with low volatility and minimal correlation to the major asset classes of equity, fixed interest, commercial property, commodities and other alternative investments.
Speaking at the launch, investment portfolio managers Stephen Kevan and Alan Moore said: “The fund has been developed using as a foundation the analysis within AM Best’s paper dated 24 November 2009 on insurance linked securities, focused on life settlements. We have then built on that base by working with leading independent experts to reflect the lessons of the last few years in respect of life settlements and the many offerings currently available.
“We see this as the first of a new generation of life settlement offerings which addresses many of the pitfalls of life settlement management recently highlighted by the FSA. There have been numerous examples, some very recent, where a lack of focus on the management of the risks – be they investment, transactional or tax – has led to a poor experience of what should be a highly rewarding element of any balanced asset allocation strategy.”
Neill Ebers, co-chief executive of PCE Investors, says: “We are very excited by the prospect of adding this fund to our range, not only from the perspective of bringing what we believe will become the benchmark life settlement fund to the professional market but also by the role it can play as a hedge within the existing strategies across our broader group. We strongly believe this strategy will be increasingly adopted by the hedge fund community to reduce volatility and enhance absolute return.”
The Strategic Life Settlement Fund has appointed PCE Investors as the investment manager.