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Investment Strategy

High Protection fund was launched in 2009 and is an absolute return fund that aims to achieve smooth predictable investment returns of between 7% and 9% per annum in a range of different currencies net of all fees and charges.

The fund aims to achieve long term capital growth by investing in a portfolio of Traded Life Policies (or TLPs), which are also known as Life Settlements in the USA. TLPs are US life insurance policies that have been sold by the original owner at a deep discount to their future maturity value and are institutionally traded through a highly regulated secondary market.

Unlike most asset classes, the unique benefit of a TLP is that the Fund Manager knows how much profit will been made in advance of purchasing the asset, which enables the Fund to deliver smooth, predictable investment returns even in challenging economic conditions. The Fund's Valuation Agent is an independent firm that provides a monthly actuarial valuation of the TLP assets which aims to gradually unwind the difference between the purchase price and the maturity value, less premiums and other operating expenses. Valuations are produced using a specialist actuarial software called Model Actuarial Pricing Systems (or MAPS), which is considered to be the industry standard. The investment management team monitor pricing very closely to ensure that the fund is valued in accordance prevailing market conditions by identifying the typical discount rates (or internal rates of return IRR) that policies are being traded at and applies this Discount Rate or IRR to the portfolio valuation to deliver a Fair Market Value.

The anticipated period that the policy will be held by the Fund before maturity is linked to Life Expectancy estimates (or LEs) which are obtained from specialist medical underwriting firms such as ITM Twenty First and AVS Underwriting that make actuarial underwriting assumptions by combining population mortality data with the medical and lifestyle history to identify realistic Life Expectancy. The LE and forecasted future premiums are combined to calculate a purchase price for the policy and will also be used each month by the Fund's Valuation Agent to identify Fair Market Value for each TLP until such time as the policy matures and a fixed maturity pay-out is be received by the Fund, generating an absolute return.

As part of the risk mitigation strategy, the Fund intends to purchase TLPs that are issued by a diverse range of life insurance companies with robust credit ratings. Diversification by life assured is also of critical importance and the Fund will aim to continue increasing its population sample by acquiring more policies with the objective of holding them to maturity.

Subscriptions can be made in USD, EUR, GBP, CHF and CZK, subject to the minimum subscription requirements of the respective share class.