The Laureola Bermuda Feeder Fund returned 0.4% in February and an average of 7.2% per annum over the past 3 years, a period which includes the unusual month of December 2018. Performance was driven by the maturity of two smaller policies and the purchase of policies at below market prices. Realised gains made up 70% of total gains last month for the Fund.
Consistency is the key to above-average performance over the longer term. Many different Funds and strategies outperform Laureola over the short term, but few can match Laureola’s long-term results. In its history, Laureola has generated 59 rolling three-year periods; in 57 of the 59 three-year periods the average annual return was better than 8% per year, the only two exceptions being 7.2% and 7.7%. Another sign of consistency — only 2 of the 94 months have been negative.
To achieve this consistency, the Fund must be genuinely non-correlated and be able to perform when traditional markets decline. Since the Fund’s inception, the S&P 500 has declined in 29 months; the sum of the 29 months’ negative S&P performance is -97%. The sum for Laureola on those same months was +19%. While this slow and steady approach won’t excite traders, it will propel the Fund to #3 among the 12 major global asset classes over the past 3 years and #2 over the past 10 years. Long-term investors will get excited about that.
To ensure the non-correlation, the Fund must be properly managed with returns based on mortality and no conflicts of interest. Laureola ticks all these boxes as the team has over 200 years of Life Settlements experience, 75% of the returns since inception have been realised, and there are no performance fees on unrealised gains. Laureola investors can sleep soundly at night knowing that their Fund won’t suffer the same outcome as some earlier and less professionally managed examples.
Download the full Laureola Fund March 2021 update
Alex Lee CFA
Director, Investor Relations – Australia and New Zealand
Laureola Advisors Inc.
Email: alee@laureolaadvisors.com
Tony Bremness is based in Europe and can be contacted at Tony.Bremness@laureolaadvisors.com