Active Management of EGF

The active management approach was pioneered by PolicyPlus and developed over many years of experience as a TEP market maker and fund manager.  It involves sophisticated decision making processes by highly qualified investment and actuarial experts as well as regular reviews and analysis of fund holdings and wider market conditions.

 

The more flexible approach of active management allows investors to:

 

  • make gains due to arbitrage opportunities
  • be better protected against downside risks as the market changes
  • enjoy greater liquidity than is normally the case in a TEP fund

 

whilst still preserving all of the advantages of conventional TEP funds.

 

This flexibility allows for fast reactions to opportunities that can occur at any time during the life of a policy, for the advantage of shareholders.

 

A Real Example

 

When Legal & General increased its surrender values in response to market data that was already out of date (as the market had begun to fall), the investment committee identified that some policies had surrender values above their underlying asset share value, and well above prevailing market values. 

 

These policies were surrendered, allowing EGF to crystallise a gain at a time when bonus rates and surrender values were expected to fall.

 

Over the following months the bonus rates were cut severely, market values of these policies reduced, and surrender values cut to a lower level than they had been at the outset.  EGF then began buying policies in the life office again at their reduced value.  The end result was that investors in EGF were protected from the downside risk as well as making gains against asset share value at the point of disposal.

 

This type of opportunity can be detected by specialist investment professionals involved in the TEP market on a daily basis in a way that individual investors and even the most competent advisors would not be able to do on a cost effective basis

 

Active management - Increasing shareholder value

 

Shares in the Endowment Growth Fund (EGF) are single priced with no bid/offer spread. Class A shares are offered in GBP and class B shares are offered in GBP, USD or EUR. Returns may be affected by fluctuations in currency exchange rates. The valuation date is the 15th of each month. Class A share prices appear under InvestmentPlus plc in the FT Managed Funds Service. The figures illustrated refer to past performance and are not an indicator of future returns. The value of shares may fall or rise each month, this means that your capital is at risk when investing in EGF. This investment should be regarded as medium to long term in nature. If you withdraw from this investment in the first 5 years, exit penalties may be applied. It is only suitable for professional investors who understand the risks involved and investment should not be made prior to reading the prospectus. If in doubt seek expert advice. Nothing contained within this document constitutes investment advice or an offer to subscribe.

The Endowment Growth Fund (EGF) is the first sub-fund of InvestmentPlus plc, which is regulated by the Irish Financial Services Regulatory Authority. Registered in Ireland No. 289965. Registered office 39/40 Upper Mount Street, Dublin 2, Ireland. EGF is distributed by PolicyPlus International plc which is authorised and regulated by the Financial Services Authority and is a member of the Association of Policy Market Makers. Registered in England No. 2392989. Registered office King’s Court, Bath, BA1 1ER, England.