- Advertisement -

Related

May Flowers for Life Insurance Policy Strategy

- Advertisement -

Stockholm (HedgeNordic) – Ress Life Investments A/S recorded a performance of 5.7% in May. The fund, managed by Stockholm based AIF manager Resscapital, invests in the secondary market for US life insurance policies with the aim to provide high single-digit returns which are uncorrelated to most other asset classes. In other words, the fund provides consumers with life insurance policies they no longer need, a way to terminate their obligation to pay premiums while recovering a higher value from their policy then they would obtain from the insurance itself.  The investment strategy relies on actuarial models and longevity statistics to calculate expected returns, thereby estimating the current value of the policies.

Anton Pozine (pictured) who is in charge of portfolio management comments on last month’s positive performance: “As the number of longevity contingent assets increases in our portfolio, so does the predictability of policy pay-outs. By assembling a well-diversified portfolio, we are able to provide attractive risk adjusted returns”.

Resscapital has set its annual target return to 7% in USD for Ress Life Investments. “In today’s market it’s very difficult to find assets that provide uncorrelated absolute returns. A life insurance portfolio offers alternative fixed income returns and real risk diversification,” states Jonas Martenson, founder of the company. The portfolio is diversified across over 50 highly rated US life insurance companies, such as MetLife, AXA or Transamerica, for example. Spreading the risk accross many stable insurance companies significantly reduces the risk of default, when the policy is due. Other risks related to the strategy such as longevity risk or transaction risk are unlikely to be influenced by market risks. As the policies are expected to be held to maturity, the results are expected to remain decorrelated from the market.

Picture © Resscapital

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

Our newsletter is sent once a week, every Friday.

Aline Reichenberg Gustafsson, CFA
Aline Reichenberg Gustafsson, CFA
Aline Reichenberg Gustafsson, CFA is Editor-in-Chief of HedgeNordic.com and NordSIP.com. She has 18 years of experience in the asset management industry in Stockholm, London and Geneva, including as a long/short equity hedge fund portfolio manager, and buy-side analyst, but also as CFO and COO in several asset management firms. Aline holds an MBA from Harvard Business School and a License in Economic Sciences from the University of Geneva.

Latest Articles

Stop Making Room for Managed Futures

By Corey Hoffstein, Co-Founder, CEO and CIO at Newfound Research: The case for managed futures as a portfolio diversifier is well established. During the...

Othania Positions Trend-Following at the Core of Multi-Asset Portfolios

Not many investors in the Nordics explicitly allocate to trend-following strategies, yet those who do often regard them as an essential building block in...

Muddling Through the Mess: Managed Futures ETFs

By Alexander Mende and Per Ivarsson at RPM Risk & Portfolio Management: Traditionally, Managed Futures (MF) strategies have been limited to hedge funds known...

There Can Only Be One

By Linus Nilsson of NilssonHedge: In the beginning, CTAs were a cottage industry, focusing on HNW, seeking outsized returns, and deploying notionally funded managed...

SMA Capital Drives Protean Select to Lower Capacity Limit

Since launching Protean Select as an opportunistic long/short equity hedge fund in 2022, Pontus Dackmo and his team have emphasized a clear priority: returns...

Atlas Global Macro Builds on Comeback with New Danish Feeder

Atlas Global Macro, last year’s top-performing Nordic hedge fund, is becoming more accessible to Danish investors through a newly launched feeder fund on the...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -