GLOBAL - A combination of strong returns from funds investing in traded life policies (TLPs) and stock market volatility have resulted in a huge increase in the amount of money institutional investors have invested in TLP funds, according to fund manager Managing Partners Limited (MPL).
TLPs are United States-issued life assurance policies sold before the maturity date to allow the original owner to enjoy some of the benefits during their lifetime. They are purchased at a discount from their maturity value, which in the majority of cases is fixed at outset, which means that they are guaranteed to rise in value.
Jeremy Leach, managing director of MPL, said: "With the current stock market volatility institutional investors have increasingly been looking at alternative asset classes that can deliver smooth attractive returns.
"TLPs provide just this, which institutional investors and pension fund managers are increasingly becoming aware of."
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