A life settlements fund, GIS General Fund, set to weather the financial storm from COVID-19 pandemic.
Press Release: Gold Coast Australia, 26th March 2020
The global financial markets remain in a perpetual state of volatility as the world absorbs more and more bad news associated with the COVID-19 pandemic. However, during this time of global economic instability, the life settlements market appears to be holding firm.
“We are all living in a very different world. Who would have thought this time last year that police would be called to fights over toilet paper. As this virus continues to spread around the world, all the traditional asset classes including some alternatives have seen significant drops.” Stephanie Nolan, CEO of GI Asset Management.
“Bucking the trend however, the Life Settlements asset class will as a minimum remain stable during the crisis or may even experience some related gains” she added.
There are several advantages to investing in Life Settlements during market instability. The asset class is not correlated to the stock, bond, commodities or real estate markets. The GIS General Fund managed to weather the storm of the GFC, and it appears that it will do so yet again during the pandemic.
In June 2019 the fund updated the underwriting on all the policies to take into account the Underwriters changes to life tables. The GIS General Fund has begun to already experience some encouraging results, returns in the first 6 months since the update have been in line with our targeted net annual return of 8-10%.
“There is market speculation that the pandemic may lead to an increase in mortality this year. Time will tell the actual impact, how the US manages to contain the virus or restrict it’s spread will be the major determinant” says Stephanie.
The GIS General Fund has only ever invested in US life insurance policies. The insureds have already impaired health with an average age approaching 90 years old. Anything that has a positive or negative impact on the mortality of the elderly is likely to impact the Funds returns.
“We have seen an increase in enquiries with investors looking more closely at the Life Settlements asset class. We urge investors considering a life settlements investment to look for transparency when evaluating investment strategies. We are advising them to watch out for excessive fees or hidden valuation assumptions that skew returns” says Stephanie.
About GI Asset Management
GI Asset Management Limited is a specialised asset manager within the insurance-linked securities market. We are experts in actively managing large and diversified portfolios of US life insurance policies. These are more commonly referred to as Life Settlements. Managing the asset class since 2004, we have acquired approx. 2.5B in face value. GI Asset Management Limited operates under a first-world regulatory scheme in Australia. (AFSL 432510). We are recognised as a manager having significant experience in efficient structuring solutions for institutional clients.
About GIS General Fund
GIS General Fund (“the Fund”) holds a stable and widely diversified portfolio of USA originated Life Settlement Policies. The Fund’s objective is to Buy and Hold to Maturity (ie. Not Trade) a diversified portfolio of Life Settlements Policies. The GIS General Fund is one of the products offered by Global Insurance Settlements Funds PLC. Global Insurance Settlements Funds PLC (GISF) is a variable capital investment company authorised by the Central Bank of Ireland. The company has been structured as an umbrella fund with segregated liability between its sub-funds. This structure is aimed at Sophisticated / Institutional investors.
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