The movements in global equity markets over the past few weeks have rightly caused some concern for investors. Ahead of the seasonally favourable end-of-year markets, many equity indices have lost ground, with the ASX down 10% since the peak in February.
alternative investments
Bonds not a safe harbour as inflation builds
Investment grade fixed income has historically been seen as a safe haven for investors but the total return on the Bloomberg Investment Grade Corporate Index for 2021 was -1.0% and US junk bonds now yield less than 4% with a projected 9% default rate.
ESG means more than the environment
Monetising a life insurance policy which is no longer needed provides meaningful help to seniors who are struggling financially but not all seniors are aware of their options and of course some policies don’t have a surrender value.
Non-correlated assets are hard to find
Many strategies claim to be non-correlated, but the problem for investors is that it works until it does not work. Sadly, everything seems to go down together in a major market downturn – the very outcome investors try to avoid by investing in alternatives.
Life settlements – part of the alternative fixed-income universe
What are life settlements? Life settlements are life insurance policies which have been sold to an investor who pays the premiums and eventually collects the death benefit.
A steady year: Proven non-correlation
The Laureola (Bermuda Feeder) Fund returned 0.2% for December and 6.0% for the year. The Fund now has a 9-year track record and has returned 15% CAGR and 239% since inception.
Running a life settlements fund
Like any fund manager a life settlements fund has a team of specialists and an asset to analyse and purchase to maximise return.
SMSFs: seek new investments or accept a possible humble retirement
The low (and even negative) interest rate environment brought about by a combination of the residual effects of the GFC and the current COVID-19 pandemic has resulted in SMSFs seeking alternative investment opportunities to maintain their target returns.