The life settlements investment market has had some criticism over the last few months after regulators comments and the introduction of a new code of practice from the European Life Settlement Association (ELSA) drew attention to the asset class. Now PDL International is seeking to address those concerns.
They’ve created a new life settlement product in the UK called the Cascade Portfolio™. The portfolio approach mitigates much of the issues with the traditional fund route and they say will help to mitigate the issues of transparency and high charges which have skewed perception of he asset class.
Chris Radford, Chief Executive Officer of PDL International, said: “As with many new asset classes that come to market there have been issues around the packaging and education of these products. However, fundamentally the life settlements asset class remains a compelling proposition for investors in an uncertain climate, as the returns are uncorrelated to financial markets.” Chris continued: “Advisers need to take a closer look at life settlements as the market is coming of age. It’s also one of the worlds fastest growing asset classes and the FSA’s interest, and more recently ELSA’s new Code of Practice, are illustrative of a maturing market.”
PDL believes that this approach addresses many of the issues around transparency, counterparty risk, liquidity and longevity risk.
Read the full press release here.