Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

2283

IFAs and institutional investors want alternatives to traditional asset classes

RELATED TOPICS​

The majority of IFAs and institutional investors who invest in traded life policies are looking for alternative investments to the traditional asset classes of equities, bonds, cash and

The majority of IFAs and institutional investors who invest in traded life policies are looking for alternative investments to the traditional asset classes of equities, bonds, cash and property, according to a survey by Managing Partners.

The survey revealed 92 per cent of respondents are looking for investment alternatives, with only eight per cent saying they were not doing so. This included 93 per cent of the IFAs and 90 per cent of the institutional investors questioned in the survey.

TLPs are US-issued whole of life policies sold before their maturity date to allow the original owners to enjoy some of the benefits during their own lifetimes. They are gaining increasing recognition for their ability to deliver steady, predictable returns uncorrelated with other asset classes.

The survey found that three out of five (60 per cent) respondents thought TLPs to be a substitute for with profits, with 20 per cent totally agreeing with that view and 40 per cent agreeing to some extent. Three out of five IFAs and seven out of ten institutional investors questioned agreed that funds that invest in TLPs are a substitute for with-profits.

There was strong support for TLPs to be regarded as an asset class in their own right, with 88 per cent of the overall sample agreeing. This included 87 per cent of the IFAs and 90 per cent of the institutional investors questioned.

Jeremy Leach, managing director of Managing Partners (pictured), says: ‘There is widespread disillusionment among both retail and institutional investors with the main asset classes. Diversification between them was supposed to protect investors against downsides but that has proved to be a false security over the last two years.

‘On the other hand, our Traded Policies Fund, which is open to retail and institutional investors, provided double digit returns in 2008, which demonstrated TLPs are an uncorrelated asset class in their own right. Furthermore, they are an ideal replacement for with profits, which are failing to deliver the steady, predictable returns that they once did.’

Latest News

Irish domiciled funds surpassed EUR4.3 trillion AuM (Assets under Management) at end-March 2024, a 15..
New analysis by London-based Nickel Digital Asset Management reveals 38 listed companies with a combined..
Bloomberg has announced that for the first time, its proprietary Bloomberg Second Measure (BSM) transaction..

Related Articles

Global ESG Investing
On May 15 Florida’s Republican Governor Ron DeSantis signed legislation that furthers his ongoing campaign to oppose the role of climate change and ESG factors in state policymaking...
On May 15 Florida’s Republican Governor Ron DeSantis signed legislation that furthers his ongoing campaign to oppose the role of..
Trends
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100 million deals announced this month alone...
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100..
Different flavours
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led, multi-boutique global asset manager with over USD20 billion under management, recently undertook a survey with 204 UK investment professionals, seeking insights into their perceptions and attitudes towards boutique asset managers...
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led,..
UK map
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be worth billions of pounds in the coming years...
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by