Alternative Investment Awards 2017

www.wealthandfinance-intl.com 17 Top Performing Hedge Fund Manager 2017: Laureola Advisors Inc. & Most Consistent Long-Term Performing Fund: Laureola Investment Fund Laureola Advisors is a specialist asset manager focused exclusively on Life Settlements, providing investors with several ways to access to this unique asset class including its Managed Account Service. We profile the firm and explore the benefits of Life Settlements as an innovative asset class. The investment world has become a dangerous place. Prices and markets are manipulated not only by the usual suspects – investment bankers and corporations – but, since 2008, by central bankers as well. Equity valuations are at historically high levels as too much capital chas- es too few opportunities. Fixed income barely provides any yield at all. Where can long term investors look for reliable and consistent returns, income they can live off, and the safety that comes with genuine non-correlation? A well-managed portfolio of Life Settlements can pro- vide part of the solution. Founded in 2012 by Chris Erwin and Tony Bremness, Laureola Advisors was established to provide investors access to the unique investment characteristics of this asset class. The Principals have invested their own capital and invite interested investors to join them. Tony Bremness is a Partner, Managing Director, and co-portfolio manager at Laureola. Tony has over 30 years of asset management experience, with portfolios ranging in size from $100,000 to over $10 billion. He is a frequent speaker at Alternative Investment Conferences, with a focus on Life Settlements. He graduated with an MBA (1985 McGill University, Canada) and has been awarded the CFA accreditation (1991). Christopher Erwin is a Partner and the Chief Investment Officer at Lau- reola. Chris is a member of the California State Bar, the Life Insurance Settlement Association (LISA), and the American Bar Association. He is the CEO of Alir Settlements, a life settlement Provider. Chris graduated from Chapman University (BA, 1996) and received his Juris Doctor degree from Chapman University School of Law (1999). This Partnership provides Laureola Investors with a skill set and a depth of experience rarely found among Life Settlement managers; the key areas of legal expertise, access to deal flow, portfolio management, and fund structure are all covered. It ensures that investors’ funds are kept safe while they profit from the best opportunities available in the Life Settlement markets. The firm’s core product, Life Settlements, are the purchase of Life In- surance policies on the secondary market in the USA, where the right to sell your insurance policy has been enshrined in law since 1911. Many individuals, particularly seniors, have unwanted or unneeded policies; Life Settlement investors provide them with an exit that is much more profitable than surrendering the policy to the Insurance company. Other individuals come under medical or financial distress and need to raise cash quickly. Life Settlement investors provide these people with liquidity when they need it most; again, with a much more profitable exit than that offered by the Insurance Company. The Life Settlement markets have developed organically – free from manipulation by central bankers or others. They are a genuine price finding mechanism for investors who wish to access this unique asset class and sellers who want to monetise their Life Insurance asset. Currently Life Settlements change hands at around 20% of future value and at yields (IRR’s) of between 12% and 18%. Both the buyer and the seller benefit from the transaction. A well-managed portfolio of Life Settlements will deliver consistent double digit returns. Risk is a core issue for investors, and as such the Laureola Investment Fund meets the key criteria of today’s concerned investors: it is gen- uinely non-correlated with capital markets and will not be affected by stock market declines, currency crises, rate hikes, economic down- turns, or geo-political shocks. This is already obvious from a brief overview of the asset class and the drivers of return; it has been confirmed by the performance pattern of the Fund; the Fund generate profits when other investments do not. The Fund’s assets have little or no credit risk; most policies are backed by Life Insurance Companies rated A or better. These companies are obligated to pay the Life Insurance claims before all other commercial creditors. In addition, its portfolio holds 120 policies, and is well diversi- fied by all the key criteria. Additional safety is found in Warren Buffet’s famous “margin for error” measure: the future value of these assets is worth 5x the current book value. A more detailed analysis shows that the Fund’s investment strategy also contributes to safety and consistency; the Fund has demonstrated multiple sources of returns and multiple sources of cash flow. The importance of cash flow in Life Settlements cannot be overestimated – a continuing stream of cash is required to pay the premiums. The Fund has historically produced returns from the collection of death benefits, from trading profits, and from buying assets at below market value. The first two are the most important as they represent realised returns rather than accounting-based returns; over 70% of the Fund’s returns since inception have been realised. Realised returns contribute significantly to Fund cash flow as does the steady and growing stream of subscriptions, lines of credit, and a significant cash reserve. Overall, the Laureola Fund has world class service providers that will give additional comfort to investors. Apex (Fund Administration), Deloitte (audit), Bank of Utah (Custodian), and Lewis & Ellis (Actuarial Consultant and independent valuation agent) are all well recognised internationally and have won multiple awards in their respective fields. The Fund also has a Platform manager - EAM (a division of Apex) - who oversees the Fund’s bank accounts and cash flows, providing an addi- tional layer of security for investors. Ultimately, well-managed portfolio of Life Settlements will provide a combination of safety and performance unmatched by any other in- vestment. It will appeal to investors who value consistent performance and to those seeking income, and will not be influenced by any of the dangers lurking in the traditional markets; Laureola investors will be able to watch from a safe distance should central bankers’ efforts ever fail to support capital markets. AI170031