SL Investment Management has launched SL LifePlus Series 2, a life settlement fund.
It aims to deliver net returns of at least eight to ten per cent per annum with low volatility and minimal correlation to the wider markets, achieving a true absolute return strategy.
Fund management charges will be between one per cent and 1.75 per cent.
SL played a key role in the creation of the newly unveiled Elsa code.
SL has a due diligence checklist of over a 110 separate items for all policy purchases including specific checks designed to identify any policies where there may be questionable insurable interest. The checklist was designed and is regularly reviewed by US legal counsel.
Life insurance company average ratings will be at least “A” or better. For any given Life insurance company, the exposure by net death benefit will not exceed the greater of USD15m and ten per cent of the total net death benefit. For any given insured individual the collective net death benefit for all policies on this individual will not exceed USD10m or two per cent of the total.
SL uses a liquidity management policy that defines and controls buying and selling thresholds to ensure that liquidity is effectively managed throughout the life of the fund.
Contracts will be in place with all distribution agents who will be promoting the fund to sophisticated investors only. An independent fund administrator will check that those investors meet the criteria to qualify as sophisticated investors.
SL’s chief executive Jeremy Brettell says: “SL welcomes the new Elsa code. What we will see now is a level playing field where investors are armed with the right framework to pick the best managers. LP2 has been designed to offer investors a safe haven for their entry into the life settlement space. Investors should look for their managers to either comply with the code or explain precisely why they do not given the protection that its principles provide.“