Senior Life Settlement Funds

MiloH

whiteflag wrote: »

See our old mucker steve62384 is at it again

http://www.moneymarketing.co.uk/pensions/rockinghams-rita-offers-drawdown-deal/1003679.article

I particularly like


Ive spent the last half hour looking at it and I cant see where its easy to understand, low risk and where the no charges come in. Perhaps Ive missed something?

That's extraordinary. Lying is a strong word but this is clearly not low risk (as it combines investment risk, longevity risk and liquidity risk), is complicated and has whacking charges on the underlying investments.

Senior Life Settlement funds come in two different flavours. I like the EEA SLS fund which takes a great deal of care in assessing the health of each policyholder to improve the return. Tony Lanning, the Gartmore Absolute Returm Fund manager, holds around 7% of his fund in EEA's SLS fund. He explained to me recently that he visited the States and requested to see files from a list of policyholders and was impressed with the level of detail and the processes they followed. Other SLS funds work on a law of averages and without underwriting which I personally think is as dubious an investment as traded endowments. Judging by steve62384's description their fund comes in this latter category.

There's an interesting article here.

whiteflag_3

MiloH wrote: »

That's extraordinary. Lying is a strong word but this is clearly not low risk (as it combines investment risk, longevity risk and liquidity risk), is complicated and has whacking charges on the underlying investments.

Senior Life Settlement funds come in two different flavours. I like the EEA SLS fund which takes a great deal of care in assessing the health of each policyholder to improve the return. Tony Lanning, the Gartmore Absolute Returm Fund manager, holds around 7% of his fund in EEA's SLS fund. He explained to me recently that he visited the States and requested to see files from a list of policyholders and was impressed with the level of detail and the processes they followed. Other SLS funds work on a law of averages and without underwriting which I personally think is as dubious an investment as traded endowments. Judging by steve62384's description their fund comes in this latter category.

There's an interesting article here.

Thanks for that Miloh. I would agree the EEA fund is completely different and one that is (wrongly) overlooked by most investors. Ive got alot of time for Yannis Katsis.

Going back to the RITA product, the really good news is that it is going to be made available to IFAs:rotfl:

dunstonh

I know I commented on the other thread on the same subject but I couldnt help notice some of things said here and events that have now happened.

Steve Hunt (MD of Rockingham) said: It does not sound like dunstonh knows the Asset Class very well himself so ADVISING you that this Asset Class is 'probably not right for you' is, itself probably not very constructive or very good advice!

Yet in the last week Rockingham have increased the risk rating and have just pulled their website and suspended sales on the advice of the FSA.

Steve also said: So what you are saying is that you are assuming Latchmore is not an experienced investor and that he is not able to understand this asset class. And it is I who is disgraceful??

It now appears Rockingham clearly didnt understand the risks

Whiteflag said (back in 2008): If the FSA want an example of a "how not to website" they just have to ask Rockingham for a borrow of theirs!

The FSA have just advised Rockingham to pull their website and marketing.

This site was pointing out the failings two years ago. The FSA have just acted on them.

feesarefare

dunstonh wrote: »

I know I commented on the other thread on the same subject but I couldnt help notice some of things said here and events that have now happened.

Steve Hunt (MD of Rockingham) said: It does not sound like dunstonh knows the Asset Class very well himself so ADVISING you that this Asset Class is 'probably not right for you' is, itself probably not very constructive or very good advice!

Yet in the last week Rockingham have increased the risk rating and have just pulled their website and suspended sales on the advice of the FSA.

Steve also said: So what you are saying is that you are assuming Latchmore is not an experienced investor and that he is not able to understand this asset class. And it is I who is disgraceful??

It now appears Rockingham clearly didnt understand the risks

Whiteflag said (back in 2008): If the FSA want an example of a "how not to website" they just have to ask Rockingham for a borrow of theirs!

The FSA have just advised Rockingham to pull their website and marketing.

This site was pointing out the failings two years ago. The FSA have just acted on them.

Correct Dunstonh- yet again the FSA locks the stable door after the horse has bolted!

I wonder what happened to Whiteflag- seems like occasionally he made a valid point;)

Velcro_Hotdog

http://www.citywire.co.uk/new-model-adviser/rockingham-offered-to-invest-100-of-pensions-in-life-settlements/a415468?re=10319&ea=245431

Shocking!

dunstonh

FSA withdraws Rockingham's advice permissions

http://www.citywire.co.uk/new-model-adviser/fsa-withdraws-rockinghams-advice-permissions/a421597?re=10608&ea=196312

I don't normally gloat but can't help it in this case.

Velcro_Hotdog

I find it odd that they are still able to carry on selling on a none advised basis though

feesarefare

Good news - Rockingham website is back up

Even better news they are no longer allowed to give advice!

dunstonh

http://www.citywire.co.uk/new-model-adviser/arm-life-settlement-fund-misses-income-payments/a514152

There you go. Signs of trouble when the income payments cant be made.

I think pretty much all the cases that those on this board have highlighted now as being dodgy have failed or are showing signs of failure. Yet some people still to choose to ignore the warnings.

dunstonh

Remember steve62384 (poster number 3 on this thread) or his real life name of Steve Hunt....

http://www.moneymarketing.co.uk/regulation/fsa-fines-rockingham-£35000/1037907.article

Well, he has now had enforcement action from the FSA:
Hunt and Forster have been banned from holding the significant influence functions and the controlled customer function relating to any regulated activity promoting or recommending Ucis.

FSA acting director of enforcement and financial crime Tracey McDermott says: “Rockingham and its advisers made the mistake of selling products that they did not fully understand. Rockingham and its advisers put hundreds of investors potentially at risk by advising them to put their money in Ucis and the complicated ARM bond

--

I find it so ironic that he posted:

It does not sound like dunstonh knows the Asset Class very well himself so ADVISING you that this Asset Class is 'probably not right for you' is, itself probably not very constructive or very good advice!

Well all I can say now is.... who is it that that doesn't know the asset classes and who is it that has been fined by the FSA and had their permissions reduced.