- Advertisement -
- Advertisement -

Related

Ress Life Investments reaches the $80m

Industry Report

- Advertisement -

Stockholm (HedgeNordic) – Ress Capital, the Swedish Fund Management company whose focus is insurance-linked securities with an emphasis on the secondary market for US life insurance policies, announced this month that AUM now exceeds USD 80 million for its Ress Life Investments fund A/S, with pension funds, insurance companies and several larger family offices among its largest investors.

Ress Life Investments, which was launched in April 2011 and is based in Copenhagen, now owns over 200 life insurance policies issued by 49 different insurance companies in its portfolio, of which 75%+ have a credit rating of A+ or A++, according to AM Best, the credit rating company.  These achievements are against the backdrop of an increase of 32% in the number of transactions in the life settlements market in 2015.

In a comment to Ress Life Investment’s growth, CEO Jonas Martenson (pictured), suggests the strong demand for both single life insurance policies and larger life insurance portfolios has been driven by the search for yield and alternative risk factors, driven by low interest rates and quantitative easing. Demand for life settlement policies is increasing simultaneously with the number of policies being offered for sale.

In addition, Mr Martenson observes an increasing demand from institutional investors adopting factor investing. Because longevity, the main risk in a life insurance portfolio, is highly uncorrelated to the general economy, it is an attractive alternative for anyone seeking risk diversification in order to increase the risk-adjusted portfolio return.

Ress Life Investment’s net return during 2016 (31 August) was +2.19%, which has mainly been driven by an ageing portfolio and insurance policies being paid out.

The Fund’s focus is on selectively buying single policies, with only 2-3% of all policies reviewed being purchased. Purchase is contingent on an independent life expectancy report, all of which contributes to creating a diversified portfolio with attractive expected returns and low sensitivity towards increasing longevity.

 

 

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Glenn Leaper, PhD
Glenn Leaper, PhD
Glenn W. Leaper, Associate Editor and Political Risk Analyst with Nordic Business Media AB, completed his Ph.D. in Politics and Critical Theory from Royal Holloway, University of London in 2015. He is involved with a number of initiatives, including political research, communications consulting (speechwriting), journalism and writing his post-doctoral book. Glenn has an international background spanning the UK, France, Austria, Spain, Belgium and his native Denmark. He holds an MA in English and a BA in International Relations.

Latest Articles

Rising Adoption of Quantitative Investment Strategies Among Nordic Investors

From a high-level perspective, there is a clear trend of increasing adoption of quantitative investment strategies (QIS) among Nordic institutional investors, either through the...

EU Plans Stress Test for Hedge Funds and Non-Bank Firms

European regulators are planning a stress test to identify vulnerabilities beyond the traditional banking sector, focusing on less regulated entities such as hedge funds,...

ALCUR Fonder Continues Hiring Spree

Following two earlier additions this year, ALCUR Fonder continues to expand its portfolio management team at a notable pace. The Stockholm-based hedge fund boutique...

Nordic Private Markets Modernize with Data-Centric Trade Lifecycle Automation

By Anders Stengaard Jensen at Indus Valley Partner: In recent years, asset managers in Nordic countries have accelerated efforts to modernize trade operations, particularly...

Norwegian Hedge Fund Industry Sees Major Boost with New Launch

The Swedish and Danish hedge fund industries remain closely matched in size, with Denmark recently edging ahead of Sweden. While still less than half...

Atlant Funds Hold Up in May Despite Mistimed Market Call

Macroeconomic and market forecasts are notoriously difficult, even for experienced hedge fund managers. What matters more than being right, however, is ensuring that incorrect...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.