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| Life Settlements Wholesale Fund by Life Settlements Funds Ltd |
| Company Details |
| Company
Name: |
Life Settlements Funds Limited |
| Stock
Code: |
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| Key Dates |
| Issue |
| Issue
Price: |
$1.00 |
| Minimum
Investment: |
AUD $20,000 |
| Details |
Issuer: Life Settlements Funds Limited
Offer: Life Settlements Wholesale Fund
Minimum: AUD $20,000 for Equity clients
Minimum additional investment: AUD $5,000
Exit fee: Nil
Brokerage: None payable by investors through Equity
14.81% pa Net Performance to 31 Aug 07
Alternative Investment
The Life Settlements Fund offers investors an alternative asset that leverages life insurance. This Australian based fund, set up as a standard unit trust, provides investors with the opportunity to diversify their investments with low risk and low volatility, yet with a potential for high returns.
The Fund buys and holds to maturity a portfolio of life insurance policies called ¡¥life settlements¡¦. Life settlements are unlike shares, property, cash and fixed interest. What makes them unique is their lack of correlation to other financial markets and the non-volatility of the underlying investment ¡V the face value of life insurance policies. This means your investment is not affected by the normal business cycles of peaks and troughs; and rising oil prices, interest rates and inflation have minimal impact.
A secondary market was established in America in the mid-1990¡¦s to allow the sale of life insurance policies under certain strict criteria. The Fund will buy policies only from American individuals who are over the age of 65 with a medically diagnosed limited life expectancy, at a very heavy discount to their face value. The Fund then becomes the owner of the policies and meets the ongoing premiums.
It is a win-win situation as it provides the life assured with an opportunity to unlock some equity tied up in their life insurance (if the policy is not wanted or no longer needed) through an immediate settlement of a percentage of the policy¡¦s face value ¡V on average about 25%. They can use this money however they want and are freed from the burden of paying future premiums. Investors pick up an asset at a very heavy discount.
The Net performance of Ordinary Units was 14.81% to 31 August 2007 (since July 2006).
The Life Settlements Wholesale Fund is now the largest open-ended fund of its kind in the world. As at 31 August 2007, the Fund had issued 468,898,220.50 units with an ordinary unit price of AUD $1.1057. It had invested in 214 life insurance policies over 68 insurance companies with an average life expectancy of 44 months and where the average age of the insured was 80 years. As at 31 August 2007 funds under management are AUD $518.4 million.
This is a long-term investment and is particularly suitable if you are not relying on your full portfolio to produce a regular income stream. Returns come from the capital growth in the unit price, which will be revalued every month, plus distributions from the profits on a quarterly basis if policies have been paid out in that period.
To download the investment statement click here 1850kb. |
We can mail a copy of the Investment Statement if you complete the
Investment Statement Request
form.
For further information contact
Equity.
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