Investment in Traded Life Policies, US-issued whole of life assurance policies sold before the maturity date, by retail and institutional investors has jumped 50% over the last year.
The estimated investment by retail investors into the five largest TLP funds distributed in the UK rose from $101.3m to $155.3m, according to The Market for Traded Life Policies report by Professor Merlin Stone at Bristol Business School. The combined assets of these funds grew from $405.2m on 1 November 2007, to $621.4m on 1 November 2008, the report found. Stone believes one of the reasons for a surge in popularity among retail investors is TLPs could be seen as a replacement for with-profits based investments. "TLPs should - and no doubt will be - acknowledged as a significant asse...
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