A glut of ageing baby boomers means opportunities to invest in life policies are growing, according to Policy Selection Limited (PSL).
PSL says the large number of US citizens wishing to sell their life policies has resulted in 94% growth of its assured fund over the past 12 months.
It says the fund held 116 policies in March 2007, but this has now risen to 229 with returns of almost 10% per annum.
Rogan Redfarn, business development director at PSL, comments: “Whereas the FTSE 100 Index fell by 11.72% in the three months to the end of February, Assured actually grew by 2.06%, with no risk to capital, and by 9.06% over the 12 months to the end of February 2008.”
He says the large number of people reaching retirement age in the US, mainly as a result of the post-war baby boom, have presented many good investment opportunities as they seek to cash in the value of unwanted life policies.
Redfarn says the asset class is likely to be popular given the current instability in other markets.
“It is one of the few asset classes that makes good sense in today’s exceptionally volatile market conditions,” he says.
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