press room
Press Room • 2009
Press articles published in some of the most prestigious financial publications throughout the world.

Publication: Managing Partners News
Publication Date: 28/10/09
 
MPL’s Traded Policies Fund outperforms peers
 
LONDON, 28.10.09 – Managing Partners Limited, the boutique fund manager has revealed that the sterling share class in its Traded Policies Fund has outperformed the AAP life settlement Index since its launch.

The GBP Growth share class in the fund has returned 25.68% in the 30 months to 15 September 2009, compared with a 16.2% rise in the AAP Life Settlement Index, which tracks the performance of 19 funds around the world (excluding those domiciled in the US) that invest in traded life policies.

The index shows that funds that invest in traded life policies largely deliver steady, incremental returns. But the index showed a relatively sharp downturn in funds’ performance generally from October 2008. One reason for this was the publication of the Valuation Basic Tables 2008, which extended life expectancies for the US population and resulted in many funds having to revalue the projected returns of their portfolios downwards. There was also a weakening of prices of TLPs on the open market because while supply of policies for sale remained strong, there were low investment levels generally because of the financial crisis. Several institutions that needed to raise money by selling assets also put their policies up for sale, pushing prices down further but also creating a window of opportunity for buyers.

Jeremy Leach, Managing Director, MPL said: “Our Traded Policies Fund was unaffected by the VBT tables because we have always factored in rising life expectancies anyway so there was no shock to the system. In December 2008, we took the decision to extend all life expectancies in our Traded Policies Fund by 25% and to smooth in the impact of this adjustment towards the estimated maturity date of each policy.

The outperformance of our fund is also testament to our approach of using prudent actuarial analysis to value policies. The Traded Policies Fund is able to deliver steady, incremental returns that are uncorrelated to other financial asset classes.”

MPL offers institutional and retail share classes in U.S. dollar, Euro, GB pound, Japanese yen and Swedish krona.

The minimum direct investment in the fund is £35,000 but the fund can also be accessed via insurance bonds or SIPPs for £2,500. The fund has also received HMRC distributor status.

For further information on Managing Partners Limited range of funds, call 0203 397 0525 or visit (www.managing-partners.com).
Publication: Managing Partners News
Publication Date: 07/10/09
 
Research among IFAs shows increase in favourability towards traded life policies
 
7 October 2009 – New research from Managing Partners Limited (MPL), the boutique fund manager, reveals that familiarity with Traded Life Policies (TLPs) has steadily increased among IFAs over the last two years. The research shows that 78% of IFAs are now familiar with them as investment products. This is compared to 74% familiar with them in 2008 and 70% in 2007.

TLPs used to be in strong competition to ‘with-profit’ based investments but according to the research, an increasing number of IFAs (78%) would not proactively recommend clients to invest in with-profits and would rather recommend TLPs.

Jeremy Leach, Managing Director of MPL, commented: “We have seen the favourability towards TLPs increase over the last two years, as with-profit investments fail to deliver positive returns for investors. TLPs offer steady, predictable returns that are uncorrelated with other asset classes, making them particularly attractive in periods of volatility.”

TLPs are US-issued whole of life policies sold before their maturity date to allow the original owners to enjoy some of the benefits during their own lifetimes. By building diversified portfolios of them and carrying out the right actuarial analysis, fund managers can use them to deliver steady, incremental returns that are uncorrelated to other financial asset classes.

Nigel Newlyn, Director at Argent Personal Finance Managers, a City-based IFA, describes TLPs as an “anchor” asset class that provides stability to his clients’ portfolios. He said: “It serves our purpose to have a percentage of portfolios invested in assets which are solid and chug along no matter what markets do.”

For retail investors, MPL offers a Sterling Growth share class in its Traded Policies Fund. The fund is a fully regulated Cayman Islands mutual fund that can be included in personal portfolio bonds, wraps and SIPPs. It was an outstanding performer in 2008. The GBP Growth share class in the fund returned 10.47% net of all charges in the 12 months to 1 January 2009. Over the 12 months to 1 September 2009, the GBP Growth share class delivered 9.18%.

Jeremy Leach continues, “whilst we have seen an increase in popularity as IFAs move away from with-profits, it is also significantly related to the credit crunch; two years ago IFAs would have relied on a weighted balance between bonds, property and equities to deliver on target returns for their clients but this asset spread has not delivered because of the financial crisis and all three remain unpredictable and volatile which has forced investors to familiarise themselves with alternative assets classes and TLPs are now favoured by a significant percentage of the market.”

The minimum direct investment in the traded policies fund is £35,000 but it can also be accessed via insurance bonds or SIPPs for £2,500. The fund is also available in a GBP Income class which generates 5% income per annum for investors and the fund also has HMRC distributor status.

For further information on Managing Partners Limited range of funds, call 0203 397 0525 or visit (www.managing-partners.com).
Publication: Managing Partners News
Publication Date: 27/08/09
 
Traded Policies Fund Gains UK distributor status
 
LONDON, 27.08.2009 – Managing Partners Limited (MPL), the boutique fund manager, has secured UK distributor status for both institutional and retail share classes of its Traded Policies Fund.

The distributor status, appointed by HM Revenue & Customs, will offer UK investors the opportunity to invest tax-efficiently in the fund. With the certified UK distributor status offshore funds can be treated for tax purposes like an onshore fund in the hands of a UK investor. As such, any income element within a fund is accounted for and distributed in the form of a dividend.

MPL applied for distributor status for its Traded Policies Fund to meet increasing appetite from investors for traded life policies, (TLPs) an uncorrelated asset class that delivers steady, predictable returns in volatile market conditions. TLPs are US-issued whole of life policies 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 MPL, commented: “Because any growth in the value of the investment is identified as a capital gain rather than as income the UK distributor status will become even more relevant in 2010 when the new tax regulations will be put in place. High earners can avoid paying income tax at up to 50 per cent on profits from their investments if they choose the fund. Returns will be taxed as capital gains and can be offset against capital gains tax allowances. It significantly enhances our existing offering as it will be a much more tax efficient investment.”

The USD Institutional share class in MPL’s Traded Policies Fund returned 9.04% net of all charges in the 12 months to 1 August 2009 and 53.22% since its launch on 30 June 2004. The USD Growth share class, which is available to retail investors, has returned 8.94% net of all charges over the year to 1 August 2009 and 11.50% since its launch on 15 April 2008%.

The returns make the fund one of the outstanding performers over the last two years, which saw many funds deliver double-digit losses amid turbulent financial markets.

The following share classes of the Traded Policies Fund are now available with UK distributor status:

Share Class ISIN
Institutional GBP KYG899161031
Institutional EUR KYG899161296
Institutional USD KYG899161114
Growth GBP KYG899161379
Growth EUR YG899161528
Growth USD KYG899161452

For further information on Managing Partners Limited range of funds, call 0207- 965- 4631 or visit (www.managing-partners.com).
Publication: Managing Partners News
Publication Date: 04/08/10
 
MPL’s Traded Policies Fund shrugs off credit crunch to deliver 52.21% over five years
 
LONDON, 04.08.2009 –Managing Partners Limited (MPL), the boutique fund manager, is delighted to announce that its Traded Policies Fund celebrates its fifth anniversary having delivered outstanding steady, incremental returns, even throughout the turmoil of the credit crunch.

The fund’s US dollar-denominated Institutional share class returned 52.21% net of all charges over the five years to 1 July, 2009, having never delivered a negative return in any single quarter over that time. The fund also compared very favourably to the AAP Life Settlement Index, which rose 9.08% throughout 2007 and 4.04% during 2008. The fund returned 7.30% in 2007 and 9.64% in 2008. 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 performance makes the fund one of the outstanding performers over a period that has seen many investment funds suffer substantial losses as a result of the global financial crisis, which impacted all of the main asset classes.

The fund, which also offers institutional and retail share classes denominated in Sterling, Euro, Yen and Swedish krona, invests in traded life policies (TLPs), 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. TLPs can be used to deliver steady, incremental returns that are uncorrelated to other asset classes.

Jeremy Leach, Managing Director of MPL, commented: “The great benefit of traded life policies is that funds that invest in them – provided they are managed correctly – can deliver steady returns that are uncorrelated to what is happening elsewhere in the financial markets. Our Traded Policies Fund has proved it can deliver double digit returns year in year-out in what has been one of the most difficult periods ever seen on financial markets. The fund could not have proved its worth in more difficult circumstances. And that makes it an ideal inclusion to any portfolio where are investors are looking to add stability.”

The Traded Policies 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 £35,000 but the fund can also be accessed via insurance bonds or SIPPs for £2,500.

For further information on Managing Partners Limited range of funds, call 0203 397 0525 or visit (www.managing-partners.com).
Publication: Managing Partners News
Publication Date: 15/07/09
 
MPL’S Traded Policies Fund is now available via Hansard International’s portfolio bond range
 
LONDON, 15.07.2009 – Managing Partners Limited, the boutique fund manager, is pleased to announce that all of the share classes in its Traded Policies Fund are now available to investors via Hansard International’s Portfolio Bond, adding to the growing list of wrapper products giving access to the fund, which offers investors steady, predictable returns.

Retail investors in the Portfolio Bond will be able to access growth share classes available in sterling, US dollar, Euro, Japanese Yen and Swedish Krona. There is also a sterling income share class, offering income of 5% per annum together with capital growth. The minimum investment is US$5,000 or currency equivalent.

Hansard International Limited is an international life assurance company and is part of Hansard Global plc, a specialist long-term savings provider with regulated businesses operating in the Isle of Man and the Republic of Ireland. It offers a range of flexible, tax-efficient investment products within a life assurance policy wrapper, developed to appeal to affluent international investors.

TLPs are US-issued whole of life policies sold before their maturity date to allow the original owners to enjoy some of the benefits during their own lifetimes. They are gaining increasing recognition for their ability to deliver steady, predictable returns uncorrelated with other asset classes.

The Traded Policies Fund is also available via portfolio bonds offered by Royal Skandia, Irish Life, Prudential, Scottish Equitable, Standard Life, Norwich Union International, Quantum, Transact and Clerical Medical International.

Jeremy Leach, Managing Director of MPL, commented: “This exciting development comes at a time when investors are searching for assets that can deliver smooth, predictable returns in a turbulent market. The returns available on TLPs are around 8-10% per annum and are uncorrelated to interest rates, equities and commodities.

“As such, investors are realising that they are a fantastic alternative to the steady returns once offered by with profits policies but which have failed to deliver. The increasing prevalence of TLP funds on wrap platforms points to growing appreciation of their benefits among investors.”

The Traded Policies Fund had a stellar year in 2008, demonstrating its non-correlation with other asset classes: the Fund’s GBP Institutional share class delivered 10.56% in the 12 months to 1 January 2009 net of all charges and the GBP Growth share class, which is available to retail investors, returned 10.47% net of all charges over the same period.

For further information on Managing Partners Limited range of funds, call 0207- 965- 4631 or visit (www.managing-partners.com).
Publication: Managing Partners News
Publication Date: 10/07/09
 
MPL adds three new share classes to meet growing demand from international investors
 
LONDON, 10.07.2009 – Managing Partners Limited (MPL), the boutique fund manager, has launched three new share classes in its Traded Policies Fund to meet increasing appetite from investors internationally for traded life policies, an asset class that delivers steady, predictable returns.

TLPs are US-issued whole of life policies sold before their maturity date to allow the original owners to enjoy some of the benefits during their own lifetimes. By building diversified portfolios of them and carrying out the right actuarial analysis, fund managers can use them to deliver steady, incremental returns that are uncorrelated to other financial asset classes.

The new share classes in the Traded Policies Fund include Swedish Krona Growth, which is for retail investors; the Japanese Yen Institutional Share Class; and the Japanese Yen Growth share class for retail investors. The fund already has retail and institutional share classes denominated in US dollar, Sterling and Euro.

Jeremy Leach, Managing Director of MPL, commented: “Investors all over the world increasingly understand the benefits that TLPs offer in terms of delivering steady, predictable returns. We are proud that the Traded Policies Fund continues to build on past performance in delivering smooth and reliable levels of return irrespective of what is happening elsewhere on financial markets.”

The USD Institutional share class in MPL’s Traded Policies Fund returned 9.42% net of all charges in the 12 months to 1 June 2009 and 51.20% since its launch on 30 June 2004. The USD Growth share class, which is available to retail investors, has returned 9.23% net of all charges over the year to 1 June 2009 and 13.61% since its launch on 15 April 2008%.

The returns make the fund one of the outstanding performers over the last two years, which saw many funds deliver double-digit losses amid turbulent financial markets.

For further information on Managing Partners Limited range of funds, call 0203 397 0525 or visit (www.managing-partners.com).
Publication: Managing Partners News
Publication Date: 08/07/09
 
MPL adds income option to its Traded Policies Fund
 
New income share class offers 5% per annum plus capital growth

LONDON, 08.07.2009 – Managing Partners Limited (MPL), the boutique fund manager, has launched the first income share class in its Traded Policies Fund, giving retail investors an income of 5% per annum with the prospect of capital growth.

The new Sterling Income share class provides a 5% annual income free from redemption penalties. The income will be issued quarterly at a rate of 1.25% by redemption of shares.

TLPs are US-issued whole of life policies sold before their maturity date to allow the original owners to enjoy some of the benefits during their own lifetimes. By building diversified portfolios of them and carrying out the right actuarial analysis, fund managers can use them to deliver steady, incremental returns that are uncorrelated to other financial asset classes.

Jeremy Leach, Managing Director of MPL, commented: “There is a real gap in the market for funds that deliver an attractive income with a reasonable prospect for capital growth. People need a reasonable income from their investments and they cannot live on the 0.5% or less interest they can expect from the banks. Based on an overall annual return of 9% in the Traded Policies Fund, even with 5% income per annum the capital value is still rising by 4%.”

The Traded Policies Fund was an outstanding performer in 2008. The GBP Growth share class in the fund, which is available to retail investors, returned 10.47% net of all charges in the 12 months to 1 January 2009. Over the 12 months to 1 June 2009, the GBP Growth share class delivered 9.78%.

The minimum direct investment in the fund is £35,000 but the fund can also be accessed via insurance bonds or SIPPs for £2,500.

For further information on Managing Partners Limited range of funds, call 0203 397 0525 or visit (www.managing-partners.com).
Publication: Managing Partners News
Publication Date: 18/05/09
 
Managing Partners Limited appoints financial director to support international expansion
 
Managing Partners Limited (MPL), the boutique fund manager, has appointed Graeme Duncan as Financial Director as the company continues its expansion spurred by growing investor interest in its traded policy funds (TLPs), which offer steady, predictable returns.

Graeme Duncan has joined from asset management group SGI-management in Hong Kong, where he was Finance & Operations Director. Between 2001 and 2005 he was financial services audit manager for KPMG in Hong Kong.

He qualified as a chartered accountant with Simpson Forsyth in Aberdeen. Graeme will divide his time between MPL’s Hong Kong and London offices, reporting directly to the company’s Managing Director, Jeremy Leach.

Jeremy commented: “MPL is a fast expanding business, spurred by growing interest in TLPs as an asset class. Investors are increasingly looking to TLPs to provide steady predictable returns and give their portfolios stability after the severe losses they have suffered in the mainstream asset classes in recent years.

Graeme is highly talented and will play a key part in our continued expansion at a time when many other asset managers have seen sharp falls in their assets under management.” TLPs are US-issued whole of life policies sold before their maturity date to allow the original owners to enjoy some of the benefits during their own lifetimes. By building diversified portfolios of them and carrying out the right actuarial analysis, fund managers can use them to deliver steady, incremental returns that are uncorrelated to other financial asset classes.

For example, the GBP Growth share class in MPL’s Traded Policies Fund, which is available to retail investors, returned 10.47% net of all charges in the 12 months to 1 January 2009. The GBP Institutional share class delivered 10.56% net of all charges over the same period. The returns make the fund one of the outstanding performers of 2008, which saw many funds deliver double-digit losses as their underlying asset classes plummeted for the second year in a row.
Publication: Managing Partners News
Publication Date: 18/05/09
 
New US Legislation set to boost Traded Life Policy
 
Managing Partners Limited (MPL), the boutique fund manager, has welcomed new legislation in Washington State that requires life insurance companies to inform policyholders that they have the option of selling their life insurance policies rather than letting them lapse.

MPL anticipates that the legislation will be replicated across the US states and will provide a massive boost to the traded life policy (TLP) market.

The new legislation will help boost the supply of life policies, offering more choice and reducing cost to investors. Currently 85% of insurance policies lapse without payout, with a mere 3% surrendered for cash value. Shockingly only 12% of all life insurance policies taken out will have a payout on death.

This new measure was introduced to protect policy holders, giving them the option of cashing in their policies and legally obliging insurance companies to disclose this option to them. $23 trillion of death benefit existed in the US in 2006, making it the largest life insurance market in the world.

Jeremy Leach, Managing Director, MPL said: “We are delighted that the need for change has been recognised. Appetite for TLP funds has risen exponentially over the last year, as a result of the difficult market conditions forcing investors to turn to the steady, uncorrelated returns that TLP funds offer. Our Traded Policies Fund’s GBP Growth share class, which is available to retail investors, returned 10.47% net of all charges in the 12 months to 1 January 2009. The GBP Institutional share class delivered 10.56% net of all charges over the same period.”

TLP’s are US-issued whole-of-life policies sold before their maturity date, allowing the original owners to enjoy some of the benefits during their own lifetimes. TLPs can be used to deliver steady, incremental returns that are uncorrelated to other financial asset classes.

Jeremy Leach, concludes “Holders of life policies might wish to sell before maturity for a number of reasons. They might no longer wish to pay the premiums, or they might need the cash for purposes such as paying for care. Selling policies on the open market means policyholders can reap the benefits from policies they have paid for. We fully support all laws and regulations that seek to license providers and brokers and to provide full and fair disclosure to the consumer.”
Publication: Managing Partners News
Publication Date: 20/04/09
 
Improved Life Expectancy Figures Could Harm
Some Traded Life Policy Funds
 
Managing Partners Limited warns that new data showing improved mortality rates could cause significant problems for some Traded Life Policy fund managers who have targeted policies with longer life expectancies, not implemented an adequate actuarial valuation method that smoothes in the impact of an improvement in life expectancies or provide for the increase in premium required.

The fund manager is urging investors with these funds to contact their fund manager to find out what impact improved life expectancy figures will have on performance and also what measures they had in place to counter the effects of this.

Traded life policies (TLPs) are US-issued whole of life policies sold before their maturity date to allow the original owners to enjoy some of the benefits during their own lifetimes. TLPs can be used to deliver steady, incremental returns that are uncorrelated to other financial asset classes.

Recently published Valuation Basic Tables (VBT – the US Population Mortality Data) for the fourth quarter 2008 revealed an improved mortality rate. Shortly after the publication of 2008 VBT, 21st Services, a leading life expectancy underwriter, announced that they were adjusting their own life expectancies out by an average of 25%, and since this the majority of life expectancy underwriters have followed suit.

Jeremy Leach, Managing Director, MPL said: “It may well be that life expectancies on a number of Traded Life Policies are now too conservative, particularly for smaller face value ones as opposed to those with a higher face value (or “Healthy Wealthy”) that have historically dominated the market. In December 2008, we took the decision to extend all life expectancies in our Traded Policies Fund by 25% and to smooth in the impact of this adjustment towards the estimated maturity date of each policy.

“Over the past five years we have maintained a cautious approach to valuing policies. Our Traded Policies Fund uses an actuarial valuation method to value its portfolio on a monthly basis, and as part of this process it automatically extends the life expectancies towards VBT every month. There is also an inbuilt sensitivity for improved mortality that has been employed in expectation of the increases that occur each time VBT is published (every seven years).

“We believe that some funds investing in traded life policies have not had these systems in place and will suffer as a result of the improved life expectancy figures.”

The systems in place at MPL effectively mean that the portfolio in the Traded Policies Fund is ultimately valued on its own claims experience and it never releases all of the profits contained within a policy prior to its maturity date. It also means that a considerable proportion of the life expectancy extensions that have taken place on the longer policies in its Traded Policy Fund portfolio have been adjusted for improved mortality over time, which will mean that the impact of the 25% extension is less.

Jeremy Leach said: “As a result of these changes to the portfolio of policies in our Traded Policies Fund and our ability to buy policies at improved internal rates of return, there will be no adverse change to the net asset value of the fund. In review of our estimate for the performance of the portfolio in 2009,we confidently expect to maintain our stated goal of producing returns of between 8% and 9% net of charges.*

MPL says that it has taken great care to ensure that the spread of policies in its fund optimises its long term potential for capital growth by maintaining an average life expectancy within a prudent corridor with the ethos that long life expectancies carry too much longevity risk (i.e. on the standard actuarial model a ten year life expectancy may run for twenty years before maturity occurs and the additional premium risk and potential inaccuracy of life expectancy make them extremely difficult to value accurately), whilst extremely short life expectancy can be just too optimistic making improved mortality highly likely.
Publication: Managing Partners News
Publication Date: 16/04/09
 
MPL’s Traded Policies Fund is Available Via Royal Skandia’s Portfolio Bond Investment Range
 
LONDON, 16.04.2009 – Managing Partners Limited, the boutique fund manager, is pleased to announce that the institutional share classes in its Traded Policies Fund are now available to investors via the Royal Skandia Portfolio Bond following popular demand for the asset class from investors.

As a result, retail investors will be able to access the fund’s institutional share classes, which offer the benefit of lower fees, including an annual management fee of just 0.3 per cent and no initial charge. The share classes are available in sterling, dollar and euro denominations. The minimum investment is US$50,000 or currency equivalent.

TLPs are US-issued whole of life policies sold before their maturity date to allow the original owners to enjoy some of the benefits during their own lifetimes. They are gaining increasing recognition for their ability to deliver steady, predictable returns uncorrelated with other asset classes.

The Traded Policies Fund is also available via portfolio bonds offered by Irish Life, Prudential, Scottish Equitable, Standard Life, Scottish Provident International, Norwich Union International and Quantum.

Jeremy Leach, Managing Director of MPL, commented: “We are delighted that our Traded Policies Fund is now available on Royal Skandia’s Portfolio Bond, which is one of the most popular offshore wrap products, favoured by investors and advisers for its ease of use in putting together portfolios of funds to match investors’ requirements.”

“The inclusion of TLP funds on more and more wrap platforms is a sign of the times as investors look for access to alternative asset classes. There is widespread disillusionment among investors with the main asset classes, as well as with profits, which have failed to deliver. The smooth, predictable returns of 8-10% per annum, which TLP funds can produce, make them a very attractive option in giving stability to portfolios.”

The Traded Policies Fund had a stellar year in 2008, demonstrating its non-correlation with other asset classes: the Fund’s GBP Institutional share class delivered 10.56% in the 12 months to 1 January 2009 net of all charges and the GBP Growth share class, which is available to retail investors, returned 10.47% net of all charges over the same period.

Research carried out among IFAs and institutional investors at a masterclass in London showed that more than two out of five (44%) attendees planned to increase their exposure to TLPs by up to 10%; over one in 10 (12%) said they would do so by 11-20%; and nearly one in four (24%) said they would do so by more than 20%. None said they would reduce their exposure while the remainder (8%) were undecided.

For further information on Managing Partners Limited range of funds, call 0207- 965- 4631 or visit (www.managing-partners.com).

Notes to Editors
* Survey was carried out among 25 institutional investors and IFAs at a masterclass at the Waldorf Hilton in London on 13th February

Managing Partners Limited (MPL) is a multi-disciplined investment company that specializes in managing alternative asset classes for institutions and sophisticated investors. It is a market leader in managing funds that invest in traded policies, an asset class that is renowned for its low-risk, inherent guarantees and balanced growth characteristics.

The board of MPL has more than 70 years’ collective experience in asset management.

MPL is recognized by the Cayman Islands Monetary Authority as an asset manager, where it manages a number of collective investment schemes and regulated mutual funds with total assets in excess of US$100 million.

Publication: Managing Partners News
Publication Date: 23/03/09
 
MPL survey shows overwhelming majority of institutional investors and IFAs looking for alternatives to traditional
asset classes
 
LONDON, 26.03.2009 – A survey of institutions and IFAs who invest in traded life policies conducted by Managing Partners Limited, the boutique fund manager, point to an overwhelming majority of them is looking for alternative investments to the traditional asset classes of equities, bonds, cash and property.

The survey revealed 92% of respondents are looking for investment alternatives, with only 8% saying they were not doing so. This included 93% of the IFAs and 90% of the institutional investors questioned in the survey.

TLPs are US-issued whole of life policies sold before their maturity date to allow the original owners to enjoy some of the benefits during their own lifetimes. They are gaining increasing recognition for their ability to deliver steady, predictable returns uncorrelated with other asset classes.

Such returns make TLPs an ideal substitute for with profits. The survey found that three out of five (60%) respondents thought TLPs to be a substitute for with profits, with 20% totally agreeing with that view and 40% agreeing to some extent. Three out of five IFAs and seven out of 10 institutional investors questioned agreed that funds that invest in TLPs are a substitute for with-profits.

There was strong support for TLPs to be regarded as an asset class in their own right, with 88% of the overall sample agreeing. This included 87% of the IFAs and 90% of the institutional investors questioned.

Jeremy Leach, Managing Director of MPL commented: “There is widespread disillusionment among both retail and institutional investors with the main asset classes. Diversification between them was supposed to protect investors against downsides but that has proved to be a false security over the last two years.

“On the other hand, our Traded Policies Fund, which is open to retail and institutional investors, provided double digit returns in 2008, which demonstrated TLPs are an uncorrelated asset class in their own right. Furthermore, they are an ideal replacement for with profits, which are failing to deliver the steady, predictable returns that they once did.”
Publication: Managing Partners News
Publication Date: 22/01/09
 
Managing Partners Limited’s TLP fund shines out in 2008
with double-digit returns
 
Managing Partners Limited (MPL), the boutique fund manager, is pleased to announce that its Traded Policies Fund delivered a stellar double-digit performance in 2008.

The fund’s GBP Growth share class, which is available to retail investors, returned 10.47% net of all charges in the 12 months to 1 January 2009. The GBP Institutional share class, which is also open to pension funds, delivered 10.56% net of all charges over the same period.

The returns make the fund one of the outstanding performers of 2008, which saw many funds deliver double-digit losses as their underlying asset classes plummeted for the second year in a row.

The fund invests in traded life policies (TLPs), which are US-issued whole of life policies sold before their maturity date to allow the original owners to enjoy some of the benefits during their own lifetimes. TLPs can be used to deliver steady, incremental returns that are uncorrelated to other financial asset classes.

Jeremy Leach, Managing Director of MPL commented: “Many investors are probably numb with shock after looking at the returns their portfolios delivered in 2008. It is highly likely they would be interested in an asset class that delivers steady returns year-in, year-out, no matter what is happening in the financial markets. Our Traded Policies Fund has proved its worth by delivering double-digit returns in one of the most turbulent years ever for investors. This is a claim that cannot be made by the vast majority of investment funds.”

MPL is staging a series of free masterclasses for IFAs and institutional investors on TLPs in February.

The masterclasses will be held at The Marriott in Edinburgh on 9th February; The Marriott Victoria and Albert in Manchester on 10th February; The Forest of Arden Hotel & Country Club in Birmingham on 11th February; The Hilton in Bristol on 12th February; and The Waldorf Hilton in London on 13th February. Registration is at 9.00am and with a buffet lunch at 12.30pm.

To book a free place, IFAs and institutional investors can call 0845 434 7725 or send an email to: masterclass@managing-partners.com.

For further information on Managing Partners Limited range of funds, call 0207- 965- 4631 or visit (www.managing-partners.com).
Managing Partners Capital Limited  |  Company Number: 06315928  |  VAT Registration Number: 100 6577 46  |  All rights reserved.