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News

3 Dec 2020 - Performance Report: Laureola Investment Fund

By: Australian Fund Monitors

Report Date03 December 2020
ManagerLaureola Advisors
Fund NameLaureola Investment Fund
StrategyLife Settlements
Latest Return DateOctober 2020
Latest Return0.34%
Latest 6 Months6.39%
Latest 12 Months10.14%
Latest 24 Months (pa)5.60%
Annualised Since Inception16.59%
Inception Date01 May 2013
FUM (millions)US$64
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 +0.34% in October, taking 12-month performance to +10.14% with a volatility of 1.95% vs the S&P500 Total Return's +9.71% with a volatility of 22.95%. Since inception in May 2013, the Fund has returned +12.49% p.a. with an annualised volatility of 4.88%. By contrast, the S&P500 Total Return has returned +11.71% p.a. with an annualised volatility of 14.49% over the same period. The Fund's Sharpe and Sortino ratios (since inception), 2.19 and 4.69 respectively, by contrast with the Index's Sharpe of 0.75 and Sortino of 1.01, highlight its capacity to achieve superior risk-adjusted returns while avoiding the market's downside volatility.

Recent maturities have left the Fund with cash to invest. The manager purchased 12 new policies at a total discount of 10% to the fair market value in October. At month-end the Fund held over 180 policies, mostly small face and all on insureds with pre-existing conditions. The majority of the policies were purchased through new sourcing channels as Laureola continues to grow both the quantity and quality of sourcing channels to prepare for the future.
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