Chartwell Asset Management Inc.
July 21, 2009 09:00 ET
Chartwell Asset Management Inc.: Magna Life Settlement Fund Outperforms
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 21, 2009) - Chartwell Asset Management Inc. today announced the performance for the first 12 months of the Magna Life Settlement Fund. The fund's investment return of 17.6% is the highest 12 month performance ending June 30, 2009 among high yield fixed income funds in Canada.
"The Magna Life Settlement Fund is the first mutual fund in Canada dedicated to investing in this unique investment category," says David Nelson, VP & Chief Operating Officer for Chartwell Asset Management Inc., the fund's investment manager. Senior life settlements provide significant portfolio diversification as they have zero correlation to stock and bond markets.
The investment objective of the fund is to deliver consistent, long-term income by investing in and actively managing a portfolio of senior life settlements issued by life insurance companies in the United States scoring at least an "A" rating with A.M. Best or an equivalent or higher rating. The Fund fully hedges the US dollar exposure. Senior life settlements are transactions involving the purchase of (a) a non-contestable life insurance policy from an elderly insured whose life expectancy can be reasonably projected using standard actuarial models, and (b) the establishment and management of appropriate reserves for payment of premiums over the remaining term of the such acquired policy.
The life settlement industry in the US has grown to an estimated $15-20 billion per year in transactions, making it similar in size to the whole Canadian commercial real estate market. This investment strategy has attracted institutional investors including Berkshire Hathaway, Deutsche Bank, EFG, Scottish Life and the Royal Bank of Scotland.
Chartwell Asset Management Inc. is a registered investment management firm, established in 2001 to provide institutional quality money management to individuals and institutions. We offer investment management services through our Managed Account Program as well as through our individual investment funds. We strive to create, preserve and enhance wealth for our clients with as little risk as possible.