Life Settlement Investment Fund (“LSIF”)

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( — April 8, 2014)  

LSIF is structured as a fixed income collection of cash flowing assets and opportunities that are engineered to achieve higher than average bond rates of returns yet housed inside of a “bond like” structure that has a defined and targeted maturity date.  Its duration is aimed at 5.5 years with a highly confident factor for double digit returns inside of a ten year final maturity. 

The conservative nature of a fixed income structure enables the investor to receive their principal with added returns that have assets whose obligor are highly rated insurance companies.  The asset allocation of LSIF is simply crafted: 70% is an amalgamation of senior life settlement policies, 20% of structured settlements and senior pensioner notes, and 10% of an Opportunistic Value component.  The safety of 90% of the fund has top rated insurance companies (minimum of A rated A.M. Best), and the U.S. Government.  The balance of the 10% enables the fund managers to incrementally add to the overall yield of the fund with cash flowing businesses that are seeking growth or opportunities that can enhance the total rate of return significantly.  All of these opportunities shall also be invested in with the goal of meeting the termination date target for principal return. 

LSIF was established to encompass a total investment structure that enables the investor to make 1 investment that embodies the allocation of purchases of different insurance policies that are contractually obliged to pay or U.S. pension policies whereby the federal government must pay.  Premium payments in the case of the life settlements are funded and accounted for obviating the need for premium calls on “in force” life policies.  These life policies are also strictly defined within the fund’s covenants to narrow the deviation of the return outcomes.  Policies whose underlying lives belong to 80 year olds with health conditions defines the arena of policies purchased.  Discount to face, remaining expected life, and remaining premium payments per policy all contribute to the total return outcome of a life settlement. 

Structured settlements and senior notes offer a complementary investment component that is safe with a different duration enabling intermittent cash flow availability to pay structural fees and premiums that may be required. 

LSIF is structured to retire most of the investor’s principal well before the termination date of the fund.  As a result of the nature of life settlement policies and the age factor within each pool, the ten year final should be ample time to retire each policy however there are liquidity mechanisms in place that allow for re-sales and secondary markets to monetize “non- retired policies”.        

LSIF is designed for safety and investor capital preservation with trust and escrow arrangements in place to protect all junctures of cash flow movements during the investment duration.  It has also been equipped with fund manager stop gap measures that have third party oversight and controls in place where fund deployment is strictly regulated and enforced. 

All of the components of LSIF have been carefully weighed in order to achieve the ends of a respectable and conservative investment with an asset class that has no correlation to any of the market, volatility, or credit risk factors that have plagued traditional investing.  Contrary to what some may view on the life settlement market that appears to capitalize on morbidity, the industry has conversely provided liquidity for those policyholders that no longer need the death benefit in their estate or legacy plans. 

In its entirety, LSIF houses cash flow incomes, safety, and operational assurances that from a total rate of return standpoint satisfy all such needs.  It is the intent of LSIF management to provide a reasonable structure that can appeal to qualified investors on a consistent basis with a traditional vehicle in a “non- traditional” asset class.