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26 August 2015

Market volatility? Don't panic. There is an alternative...

Recent equity market events have provided a timely reminder of the fragility of the global economic recovery. In particular, events have highlighted the complex nature of the interconnections between major global trading partners, along with the inherent dependence of one nation's growth on the wider global economic landscape.

With shares in China plunging - despite several attempts by the Chinese government to intervene and allay concerns - global investor reaction has been to enact large scale sell offs.

The FTSE 100 has fallen more than 15% since its peak in April 2015. The US Dow Jones has fared little better. At one point in trading on Monday (24th August) the German DAX stood at 9,338. A drop of nearly 25% from its peak in April 2015; albeit off the back of very strong growth in the preceding six month period.

With market commentators cautioning that there may be further volatility ahead, and with the Greek position by no means fully resolved in Europe, investors are naturally looking towards alternative investment strategies in their search for yield as interest rates look set to stay lower for longer. Particular consideration is being given to investments that can help to mitigate the 'roller coaster ride' of global equity markets.

SL Investment Management's latest US Life Settlement product, BlackOak Investors LP, aims to fulfil this investor need - providing investors with a low volatility, low correlated investment that is dependent upon the future longevity of US seniors.

BlackOakLaunched in February 2014, the fund has achieved an impressive 19.1% return in its first 16 month period to July 2015. Unlike many other longevity risk funds on the market, this has been achieved through a combined strategy of buy to hold along with the active management of assets  - seeking out opportunities to trade policies on in the market to realise value and enhance investor returns.

Patrick McAdams commented, "We are delighted with the performance of the fund to date. The active trading strategy is proving to be a particularly useful feature in achieving realised fund returns in the initial period following on from launch."

"The fund is currently small, with fund raising to date having been limited by regulatory restrictions on our ability to directly promote the fund. However, we are confident that these limitations will be overcome in the very near future, and a wider base of investors will have the opportunity to participate in the benefits the fund has to offer."

BlackOak Investors LP is a UK domiciled fund denominated in USD. It is suitable for global sophisticated investors only, with a minimum investment requirement of the USD equivalent of 125k EUR. For further information please contact Patrick McAdams via e-mail, or on +44 (0)1244 317666.