the new shepherds investment fund designed to cope with tep market fluctuations
Shepherds has launched an offshore investment fund designed to deal with imperfections in the TEP market and attract new investors through a low-minimum investment option.
Based in the Isle of Man, Shepherds Select Funds offers a lump sum or gradual investment process.
With Shepherds Select Funds TEP class, the minimum investment is a lump sum of $15,000 or sterling equivalent.
Alternatively, regular investors can invest directly in the traded endowment fund with a minimum of $150 per month over five years.
Shepherds believes this will attract new investors to the TEP market.
A potential problem in the TEP market is a dilution of fund returns in the event of a shortfall of suitable policies in the market.
Shepherds has introduced a cash holding class to the Shepherds Select Funds, the lump sum route into the traded endowment fund, in order to deal with this problem.
Should there be insufficient policies for the fund to invest in at any time, investors are placed on a waiting list for shares until suitable investments become available. While they are placed in this cash class, investors receive a money market return.
Alan Morgan-Moodie has been appointed director of the fund and managing director of Shepherds Investments.
TEPs investors can invest via Shepherds Select Funds Limited, or directly in the Traded Endowment Fund. Monthly investment in the Traded Endowment Fund commences 23 July 2002, with first investments on 1 August 2002.
Morgan-Moodie has more than 28 years experience in the unit-linked life industry. After founding Albany International Assurance in 1986, he moved to SLI Services, the sales arm of Sun Life International. He has also contracted with CMI and Scottish Provident International.
Shepherds has also appointed Mike Simmons as international sales manager. He is a qualified lawyer whose career in international insurance has included a spell as international consultant for Scottish Provident International. His position at Shepherds follows on from a two-year stint in the Middle East as a business consultant.
Founded in 1995, Shepherds now manages more than £100m worth of endowment policies.
Shepherds Select Funds is an open-ended investment company based in the Isle of Man, managed by Shepherds Investments.
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