Fund Monitors Pty Ltd

www.fundmonitors.com
© Copyright 2024
Printed: 03 July 2024 11:32 PM

News

28 Jan 2021 - Performance Report: Laureola Investment Fund

By: Australian Fund Monitors

Report Date28 January 2021
ManagerLaureola Advisors
Fund NameLaureola Investment Fund
StrategyLife Settlements
Latest Return DateDecember 2020
Latest Return0.93%
Latest 6 Months5.43%
Latest 12 Months9.57%
Latest 24 Months (pa)8.71%
Annualised Since Inception16.36%
Inception Date01 May 2013
FUM (millions)US$66
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 +0.93% in December, taking CY20 performance to +9.57% with a volatility of 1.98% vs the S&P500 Total Return Index's return of +18.40% with a volatility of 24.84%. Since inception in May 2013, the Fund has returned +16.36% p.a. with an annualised volatility of 5.60%. By contrast, the Index has returned +14.10% p.a. with an annualised volatility of 13.76% over the same period. The Fund has a down-capture ratio (since inception) of -37.68% which indicates that, on average, the Fund has risen during the S&P500's negative months - this highlights its uncorrelated nature.

In their latest report, Laureola emphasise that the quality of returns is critical in Life Settlement Funds - the more generated from realised gains (cash profits) the better. In 2020, all of the Fund's returns (100%) were generated by realised gains. The Fund experienced 23 maturities during the year for a total payout of 19.8 ml, ahead of expectations. Laureola noted performance, especially performance due to mortality, continues to improve as it has since 2018.

Laureola highlight that the Fund has been designed from inception to maximise safety; the investment focus is on mortality rather than accounting gains.
More Information

Australian Fund Monitors Pty Ltd
A.C.N. 122 226 724
AFSL 324476
Email: [email protected]