International fund manager Managing Partners Limited (MPL) has signed a partnership deal with MIDF Amanah Asset Management Berhad (MIDF Amanah), the asset management arm of Malaysian Industrial Development Finance Berhad (MIDF).
The deal will give Malaysian investors the opportunity to exploit the steady incremental returns offered by life settlements. MPL is the only life settlement company to offer a Malaysian currency class to investors.
Established in 1960 as part of Malaysia’s strategy to accelerate industrial sector development, MIDF enjoys a strong position in many segments of the financial services industry today. Its core businesses include investment banking, development finance and asset management.
MPL’s Traded Policy Fund was launched in 2004 and by using prudent actuarial analysis to invest in a diversified portfolio of life settlements, it has delivered returns of 8-10% per annum. Life settlements are US-issued, whole of life assurance policies sold before the maturity date to allow the original owner to enjoy some of the benefits during their lifetime. MPL has also now created a Ringgit share class for the Malaysian market.
Jeremy Leach (pictured), Managing Director of MPL, commented: “We are delighted to be working with MIDF Amanah. Malaysia is a large and varied market that offers a multitude of opportunities for us and launching this Malaysian share class is a response to rising demand from investors. By expanding our footprint through MIDF Amanah we will be able to deliver fully compliant, non-correlated investment product to clients.”
Scott Lim of MIDF Amanah says: “The Traded Policy Fund is a unique product. Its low correlation with other asset classes, steady returns and lack of volatility makes it ideal for our clients. After studying many other life settlement companies, we have chosen to work with MPL because of its strong management team, expertise in currency hedging and durable track record. We believe the appetite in Malaysia for funds that invest in life settlements will grow rapidly.”
The Traded Policies Fund offers institutional share classes in Japanese Yen, US dollar, Euro and Sterling denominations. Growth share classes, which are suitable for retail investors, are available in Japanese Yen, US dollar, Euro, Sterling, Swiss Franc and Swedish Krona. The Fund is fully hedged in these currencies. The longest-running share class in the fund, the US dollar Institutional, was launched on 30 June 2004 and has returned 83.98% net of charges over the seven years from launch to 1 August 2011.