Traded endowment policy specialist Shepherds has today launched the first traded life fund outside o...
Traded endowment policy specialist Shepherds has today launched the first traded life fund outside of the United States.
The fund, which is dollar denominated, aims to provide annual growth of 9% with a bonus of 1% extra if investors stay in the fund for more than four years, 2% for five years and 3% for six years. Shepherd's? managing director Mike Abraham said traded life policies are life insurance contracts sold by policyholders to unlock the benefits prior to their death.
He said: 'US policies are purchased because its citizens are highly insured and there are a large number of policies available. In the US, the TLP market turned over $2bn last year, the over-65s are estimated to have $467bn of life cover, with $167bn available for sale at any one time.'
He added: 'Because the policies are not linked to any form of investment performance, a payout is guaranteed. The buyer receives the full life benefit on the death of the assured, but buys at a discount.'
The TLP Fund is available only through advisers and has a minimum investment of $15,000. The annual management charge is 1.5% per annum. There is no set up charge and commission to brokers is 3%.
Contact: 0207 398 4509.
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