Absolute Assigned Policies (AAP) has insisted there is a boom in traded endowment policies (TEP) de...
Absolute Assigned Policies (AAP) has insisted there is a boom in traded endowment policies (TEP) despite question marks over the industry's future.
The UK market maker claims the number of purchases has grown by over 50% in the last 12 months on the back of "substantial and growing" demand.
And it predicts that more than £150m of TEPs will be traded over the coming year despite doubts being raised about the market's long-term prospects. The increasing demand for TEPs over the past few years even led to the launch of funds of TEPs, such as the Shepherds Select TEP funds, which has made the recent withdrawal of market makers a shock. David Arnold, AAP marketing director, insisted the withdrawal didn't signal a slowdown. "AAP can report healthy and growing investor demand for policies especially from the collective investment funds that we supply," he said.
Arnold added that AAP was also involved in the supply of policies to a number of new TEP funds planned for launch over the next six months.
"There are tremendous opportunities for investors as those buying policies are actually paying less for them than they would have done a few years ago," he said.
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