UK fund takes U.S. life policies to eastern Europe

Boutique fund manager Managing Partners Limited (MPL) has set up a series of joint ventures in eastern Europe to market a fund investing in U.S. traded life policies (TLPs), it said on Tuesday.

MPL Managing Director Jeremy Leach told Reuters the fund will be the first such product aimed specifically at the eastern European market.

He would not give full details of the banks and fund managers who are teaming up with MPL's newly-created vehicle, Elysium Capital Plc, to market the Elysium High Protection Fund

He said, though, that Prague-based wealth manager NWD Asset Management, will distribute the fund in the Czech Republic.

TLP funds invest in U.S.-issued life policies sold before their maturity date. The asset class is used as a tool for diversification, given their low correlation to other financial asset classes.

Leach hopes the fund will capitalise on investors' flight to low-risk products, and he is targeting professional investors, intermediaries and institutions. The fund will aim for 9 percent net returns and expects to raise $50 million by year-end.

" is a new market for us, we already have some mandates from that market, which gives us confidence," Leach said.

The Elysium High Protection Fund will have three share classes denominated in Czech crowns, euros and U.S. dollar.

"While the Eastern European sphere is moving into the European Union, the countries still have their own currencies and they do not have the same access to sophisticated or alternative investments other than by taking a currency risk," said Leach.