top of page

​Important Disclaimers
This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

    • Jun 16, 2020

Life Settlement Opportunities That Defies Volatility

Life Settlement Opportunities That Defies Volatility

Life settlements are attracting more institutional investors due to their low volatility and independence from traditional market fluctuations.


This investment strategy is increasingly popular among entities seeking stable, uncorrelated returns with potential high gains. With more sophisticated players entering the market, the liquidity and competition for purchasing life insurance policies have grown.


As the market has evolved, it is now well-regulated and features a robust secondary and tertiary trading environment. Despite rising costs due to increased competition, smaller investors can still find opportunities by directly purchasing policies, avoiding the inflated prices of pooled investments. This method of diversification within life settlement funds helps manage risks and optimize returns, making life settlements an appealing option for those looking for non-traditional investment avenues in uncertain economic times.


Access the full article to delve into the growing appeal of life settlements among institutional investors, driven by their low volatility and independence from traditional markets. Learn about the evolving market landscape, valuation factors, acquisition strategies, investment returns, and diversification opportunities within this unique asset class.



If you do not have a work email address, please email us at info@primealpha.com and we can email you the report directly.



Table of Contents

  • Introduction of Life Settlements

  • The Origin of Life Settlements

  • How it Benefits Policy Holders

  • Current Observations on the Industry

  • Factors of Valuation of Life Settlements

  • The Importance of Policy Acquisition

  • Underwriting and Valuation Process

  • Rates of Return and Investment Durations

  • Diversification Within Life Settlement Funds

  • Risk Management

  • Further Diversification




Thanks to our Contributor


HedgeACT

www.hedgeact.com


HedgeACT was launched in 2014 with the goal of enabling financial advisors to easily add non-correlated, historically alpha-generating private placement alternatives to their existing model portfolios.


HedgeACT Philosophy

  • Griffin Asset Management LLC is an SEC Exempt Reporting Advisor (ERA)

  • Source hard-to-find, unique managers

  • Non-correlated both to the equity and bond markets, and with each other

  • Goal to generate consistent, positive returns with limited negative volatility

Access PrimeAlpha Alternatives Education, Research, and Database of Managers and Investors
bottom of page