Absolute Return Funds
What Sets Us Apart
It all starts with one simple, yet powerful idea: purchasing life insurance in the secondary and tertiary markets at a discount can produce high returns. The advantage of this transaction, known as a life settlement, is that it provides an opportunity for attractive returns even in turbulent market conditions. Luxembourg Life Fund II FCP RAIF – Absolute return Fund IV is made available to professional investors willing to invest into to the life insurance market, with a long-term strategies and minimal correlation to financial markets.
Fund Strategy
The Absolute Return Fund IV is a closed-end investment undertaking. Unlike open-end investment entities, policies are mainly sourced through tertiary markets, and are complemented by secondary market transactions. More mature tertiary market life settlements, acquired in larger blocks, allow for the highest speed of redeployment, and ensure economies of scale while minimizing cash drag. The Absolute Return Fund IV seeks to build a large diversified portfolio across numerous factors, including but not limited to carrier concentration, expected maturities, gender, age, medical impairment, geography, and face value size. In order to properly implement a buy and hold strategy, mortality risk is isolated and a large sample size is built. Since the majority of policies are held through maturity, extremely detailed actuarial and financial analysis is employed to ensure that the policies purchased account for longevity risk, as well as other variables of the statistical profile.
The process of selecting and pricing the policies is achieved by the valuation of the assets following rigorous actuarial approach.
Net returns collected by the Absolute Return Fund IV are periodically distributed to the investors. The strategy of the Absolute Return Fund IV aims at providing investors with a closed-end fund investment option into life settlements with nearly no correlation to traditional asset classes.
How to Invest?
To invest within any of the sub-fund within the Luxembourg Life Funds is simple and straightforward. Please request any of our prospectuses and additional investor information on life settlements and mortality linked investments.