Fund manager Managing Partners says its Traded Policies Fund’s US dollar-denominated institutional share class returned 66.41 per cent net of all charges over the six years to 30 June 2010.
The fund has never delivered a negative return in any single quarter over that period.
The fund also compared favourably to the AAP Life Settlement Index, which rose 8.73 per cent throughout 2007and 3.99 per cent in 2008 and fell 0.88 per cent in 2009.
The fund returned 7.30 per cent in 2007, 9.64 per cent in 2008 and 8.72 per cent in 2009.
The index tracks the performance of funds implementing an investment strategy in the US life insurance sector and serves as a benchmark for investments in traded US life insurance.
The fund’s GBP growth share class, which is suitable for UK retail investors, returned 8.87 per cent over the 12 months to 30 June and 31.13 per cent over the three years to that date, net of all charges.
The fund, which also offers institutional and retail share classes denominated in Sterling, Euro, Yen and Swedish krona, invests in traded life policies which are US-issued whole of life sold before their maturity date to allow the original owners to enjoy some of the benefits during their own lifetimes.
Jeremy Leach, managing director of Managing Partners, says: “The performance of the Traded Policies Fund shows that portfolios of traded life policies can indeed deliver steady, incremental returns, even in the harsh market conditions that we saw in the financial crisis. The fund could not have proved its worth in more difficult circumstances. That makes it an ideal inclusion to any portfolio where investors are looking to add stability.”
The fund is a fully-regulated Cayman Islands mutual fund that can be included in personal portfolio bonds, wraps and Sipps. The minimum direct investment in the fund is GBP35,000 (or currency equivalent) but the fund can also be accessed via insurance bonds or Sipps for GBP2,500.