Elysium Capital has launched a fund investing in Traded Life Policies (TLPs) for investors in Eastern Europe.
The Elysium High Protection fund is designed to offer investors the opportunity to benefit from steady, incremental returns offered by TLPs.
TLPs are US-issued whole of life policies sold before their maturity date.
The fund targets returns of 9% p.a. net of all charges and is aimed at professional investors plus IFAs and institutions that may elect to distribute the fund to retail investors.
The firm claims its fund is the first to invest in TLPs to be distributed in Eastern Europe that offers investors the opportunity of participating in their own currency.
Elysium is a joint venture between boutique fund manager Managing Partners Limited (MPL) and several institutions in Eastern Europe. MPL will manage the Elysium High Protection fund, which mirrors MPL's Traded Policies fund.
Traded Policies fund's sterling growth share class returned 10.47% net of all charges in 12 months to 1 January 2009.
Prague-based NWD Asset Management will distribute the fund.
Paul Morrison, managing director of NWD, says: "TLPs as an asset class have become renowned for their low risk, inherent guarantees and balanced growth characteristics."
He believes their properties are particularly attractive to investors who have suffered severe losses from recent market turmoil.
"This fund will offer investors in the Czech Republic low risk, absolute returns in their own currency - the crown - giving them the comfort of familiarity," says Morrison.
The Elysium High Protection fund has three share classes denominated in Czech crowns, euro and US dollar. There is a 1.25% annual management fee, while intermediary commission is negotiable.
More information on MPL funds is available at: www.managing-partners.com or 0207 965 4631.
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