It’s all go for Series III
Fund manager AM Corporation has opened Series III of its popular Traded Policies Fund, which has received some $470 million in inflows in under three years.
The new series will accept policies with a maturity of between 7 and 15 years, longer than previously. The Traded Policies Fund, which invests in the secondary market for life insurance policies, returned 12 per cent in the year to November 30, 1998.
"The wider maturity range will allow AM to meet the enormous demand for this unique investment class," says Graham Davison, general manager of business development at AM Corporation.
Davison says the fund appeals to advisers because it produces higher returns than traditional fixed interest in the current low-interest rate climate, while the intrinsic value of each policy is capital-guaranteed by major life offices.
The Series III fund opened on December 4 1998 and has since received over $10 million in inflows . It is targeted return is 8-10 per cent annually.
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