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News

30 Sep 2020 - Performance Report: Laureola Investment Fund

By: Australian Fund Monitors

Report Date30 September 2020
ManagerLaureola Advisors
Fund NameLaureola Investment Fund
StrategyLife Settlements
Latest Return DateAugust 2020
Latest Return1.29%
Latest 6 Months6.44%
Latest 12 Months10.87%
Latest 24 Months (pa)5.38%
Annualised Since Inception16.88%
Inception Date01 May 2013
FUM (millions)US$65
Fund OverviewA 'Life Settlement' is the transfer of the ownership and beneficial interest in a life insurance policy to a third party. The policy owner transfers their rights to the policy in return for an immediate cash payment. The buyer of the policy is then responsible for its maintenance and will be entitled to receive the policy benefits from the insurance company upon maturity.

The investment strategy of The Laureola Investment Fund is dynamic and flexible, designed to take advantage of the frequent but temporary pricing anomalies of an asset class that is not yet fully understood by the majority of participants.

Laureola Advisors applies 'best practices' common in the management of traditional assets, particularly the use of independent, in-house, proprietary research.
Manager CommentsThe Laureola Investment Fund rose +1.29% in August taking 12-month performance to +10.87% with a volatility of 2.09%. Since inception in May 2013, the Fund has returned +16.88% p.a. with an annualised volatility of 5.69%. The Fund has delivered positive returns in 8 out of 10 of the S&P500 Accumulation Index's worst months since the Fund began, highlighting the Fund's low correlation to the index.

Performance in August was driven by realised gains as 4 policies matured with a total of $3.3 million in payouts. YTD the Fund has experienced 18 maturities which in Laureola's view is a remarkable number on a portfolio of 165 policies. The maturities allow the Fund's Advisors to offer a 5% payout, highlighting the Fund's credentials as a Fixed Income Alternative.

Laureola noted supply in the Life Settlements market is growing at a double digit pace, with the consequences of COVID expected to increase the supply in the secondary market.
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