GIS General Fund Holds Steady During Economic Volatility
A life settlements fund, GIS General Fund, set to weather the financial storm from COVID-19 pandemic.
By: GI Asset Management
"We are all living in a very different world. Who would have thought this time last year that police would be called to fights over toilet paper. As this virus continues to spread around the world, all the traditional asset classes including some alternatives have seen significant drops." Stephanie Nolan, CEO of GI Asset Management.
"Bucking the trend however, the Life Settlements asset class will as a minimum remain stable during the crisis or may even experience some related gains" she added.
There are several advantages to investing in Life Settlements during market instability. The asset class is not correlated to the stock, bond, commodities or real estate markets. The GIS General Fund managed to weather the storm of the GFC, and it appears that it will do so yet again during the pandemic.
In June 2019 the fund updated the underwriting on all the policies to take into account the Underwriters changes to life tables. The GIS General Fund has begun to already experience some encouraging results, returns in the first 6 months since the update have been in line with our targeted net annual return of 8-10%.
"There is market speculation that the pandemic may lead to an increase in mortality this year. Time will tell the actual impact, how the US manage to contain the virus or restrict it's spread will be the major determinant"
The GIS General Fund has only ever invested in US life insurance policies. The insureds have already impaired health with an average age approaching 90 years old. Anything that has a positive or negative impact on the mortality of the elderly is likely to impact the Fund's returns.
"We have seen an increase in enquiries with investors looking more closely at the Life Settlements asset class. We urge investors considering a life settlements investment to look for transparency when evaluating investment strategies. We are advising them to watch out for excessive fees or hidden valuation assumptions that skew returns" says Stephanie.
About GI Asset Management
GI Asset Management Limited is a specialised asset manager within the insurance-linked securities market. We are experts in actively managing large and diversified portfolios of US life insurance policies. These are more commonly referred to as Life Settlements. Managing the asset class since 2004.