US Traded Life Interests Fund

For Professional Investors Only

The US Traded Life Interests Fund is a cell of Alternative Asset Opportunities PCC Ltd, a closed-ended protected cell company incorporated in Guernsey. It was launched on 25 March 2004. Initial gross proceeds of the placing and offer for subscription amounted to £40m. The Fund’s investment objective is to provide shareholders with a capital return through investment predominantly in a diversified portfolio of Traded Life Interests (TLIs). TLIs are life insurance policies issued in respect of US individuals by US life insurance companies, which are traded in a secondary market. The portfolio of Traded Life Interests is managed by SL Investment Management Limited. RCM (UK) Ltd is responsible for managing the cash, fixed interest securities and foreign currency hedging. While the Fund’s sterling denominated shares are listed on the London Stock Exchange, its assets will be denominated predominantly in US dollars. The Fund’s US dollar exposure is hedged through the forward sale of US dollars into sterling(i).
Quick Facts as at 30.06.2010
Launch Date March 2004
Total Assets £33.0m
Gearing (net) 48.7%
(i) Foreign currency exposure. The Fund’s US dollar exposure is hedged through the forward sale of US dollars into sterling. While this hedge is intended to reduce currency risk it may not do so entirely and there can be no assurance that the value of the portfolio will at any time be fully protected from currency risk or that unrealised losses on the Company’s forward currency sales will be recovered in full. In the event of a fall in value of the Fund’s assets or loss on the Company’s forward currency contracts arising from an increase in the value of the dollar, the Fund might not be able to comply with the borrowing covenants contained in the Credit Facility Agreement and may be required to repay its borrowings through selling policies, potentially at disadvantageous terms.
This information is for Professional Clients only. RCM (UK) Ltd. is registered in England No. 2014586. RCM (UK) Ltd. RCM (UK) Ltd are authorised and regulated by the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS. Financial Services Authority references 122219 and 148002 respectively. Registered offices: RCM (UK) Ltd.: 155 Bishopsgate, London, EC2M 3AD. SL Investment Management Limited is a registered company in England and Wales. Registered at 8-11 Grosvenor Court, Foregate Street, Chester, CH1 1HG, UK. Registered no. 2485382
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