Launch  
% Movement
1 mth 3 mths 6 mths 12 mths
 
0.17% 0.39% 2.17% 5.67%
0.58% 1.78% 3.63% 7.57%
0.53% 1.58% 3.64% 7.09%
0.62% 1.94% 3.83% 7.56%
0.54% 1.84% 3.86% 7.48%
APR
Fund Name CCY Date NAV Since Launch
   
Argent DMS Diversified EUR 14-Jan-05 123.3110 6.24%
Argent DMS Enhanced EUR 01-May-05 117.6811 7.85%
Defined Return Fund Capital Protected EUR 15-May-06 120.3748 6.86%
Defined Return Fund Growth Series 2 EUR 15-Jun-06 168.1211 7.86%
LSSF Managed Growth A EUR 15-Nov-06 111.9189 7.37%
click to see the performance of all classes

Acquisition of synthetic policies help CFM’s life settlement portfolio reach US$700m

Probably the most exciting development in the Life Settlements market this year has been the growing number of financial institutions entering the market for longevity derivatives – or synthetic policies. The addition of synthetic derivatives to the existing secondary market for life policies will both complement the existing market and no doubt help greatly to raise general awareness of this growing asset class.

Having identified early on the significant benefits synthetics can bring to a life settlement portfolio, Centurion Fund Managers closed its first leveraged longevity swap with major market player Credit Suisse last July.

David Rawson-Mackenzie, Managing Director of Centurion Fund Managers, comments: “The whole question of managing the risks arising from an ageing population is very topical in the capital markets and we believe that longevity swaps have an important role to play in the life settlement markets”.

The addition of a carefully selected synthetic tranche to our portfolio not only enhances our existing longevity profile, but brings other benefits, being chiefly:


Liquidity: previously, the inefficiencies in the market and the lack of transparency made this asset class less attractive to institutional investors. The introduction of swaps will make the longevity market far more attractive for institutional investors given the flexibility a swap product offers, and will significantly enhance the overall market liquidity.

For the fund this will greatly enhance the liquidity management for FX hedging, premium financing and redemptions.

Reduced volatility: the universal size of the cash-flows under the swap are set in advance for each synthetic life to complement the existing cash-flow profile, thereby reducing the fund's volatility.

Thanks in part to this synthetic transaction the total face value of Centurion’s life settlement portfolio has grown from US$338m to US$672m year to date. The new profile of our portfolio is illustrated in the pie chart above.

Our bidding team meanwhile continues to analyse life policy offers from providers, looking for high quality assets that comply with the strict sourcing criteria for our funds. Over the last 12 months we have sourced in excess of 140 policies, maintaining our bid/win ratio at 5%.

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This fact sheet offers information about funds managed by Centurion Fund Managers Ltd and promoted by Centurion Portfolio Managers Limited. Centurion Portfolio Managers Limited is authorised and regulated by the Financial Services Authority (FSA). The information in this document should not be construed as investment advice or an offer, invitation, inducement or solicitation to sell, issue, purchase, subscribe for or otherwise acquire shares. No reliance may be placed upon the information or opinions contained in this document. Past performance is not indicative of future returns. The information in this document and any further information provided by or on behalf of Centurion Fund Managers, has not been verified and is liable to change at any time. The information in this document is for information purposes only and is confidential. It is not directed at or intended for distribution to or use by any person or entity in any jurisdiction where (by reason of that jurisdiction’s applicable securities laws, person or entity’s residence or otherwise) such distribution, publication or use would be contrary to applicable law or regulation. It may not be reproduced or further distributed to any other person or entity or published, in whole or in part, for any purpose. Furthermore this document is strictly only for persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI2005/5129), as amended (the “FPO”), or persons falling within paragraph 49 of the FPO (high net worth companies, unincorporated associations etc.) or persons to whom it may otherwise be unlawful for these materials to be communicated without approval of the same for the purposes of section 21, Financial Services and Markets Act 2000.