Managing Partners Limited (MPL) is planning to launch three traded life funds in January.
The funds will be managed by Jeremy Leach, the managing director of MPL, and will open up access to previously untapped emerging market opportunities for the asset class.
“We are in the process of launching three funds, some hybrid and some exclusively traded life policy,” says Leach. “The funds will be focusing on new markets; for example, we are launching one in Eastern Europe.”
The Elysium fund, which is due to be launched on January 2, will be invested exclusively in traded life policies in the Czech Republic. Leach says that the relative immaturity of the market and the risk averse nature of Czech investors make traded life policy investing an appealing concept.
“The Czech National Bank is the regulator and we are seeking approval to market the fund in the Czech Republic,” he says. “There are not any sophisticated financial products in the Czech Republic, so it offers an interesting investment opportunity.”
The other two funds are in the process of being finalised, but it is hoped that both will be launched in January. Leach confirmed that one would be a hybrid fund and the other exclusively traded life policy.
MPL is an asset management company that specialises in traded life policy funds. The funds are comprised of policies bought at a discount from their maturity values and designed to provide a steady, predictable level of return.
The current Traded Life Policy Fund that is offered by the group has produced a return of 10.31% over the past 12 months.