Mon, Apr 27, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Pensions, endowments, family offices reconsider life settlement investments

Thursday, April 10, 2014

Bailey McCann, Opalesque New York:

Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, and their high rate of return was attractive to hedge funds. However, as hedge funds have shifted to more short term investing allocators themselves are stepping in.

"The typical timeline for an investment like this is minimum 7 years, that can be a long time for a hedge fund to be locked up in an investment in the current environment," Scott Page, president and CEO of The Lifeline Program tells Opalesque. "Instead, we're seeing more interest from pensions, endowments and family offices that have a longer term investment horizon and can stay with these vehicles for the long haul."

The Lifeline Program provides life insurance settlement options for life insurance policyholders that wish to get out of unwanted or underperforming policies. Typically one of these policies is considered underperforming if a policy holder took out universal life coverage when interest rates were much higher and now sees little help from interest rates in terms of cost and coverage. Depending on the age of the policyholder, investors who wish to purchase these policies can find a decent return multiple.

"Well constructed life settlement portfolios can have long term returns in the low- to......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  4. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

  5. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

 

banner