Praesidium Investment Fund is a specialist investment fund that was incorporated in 2013 to offer investors a unique opportunity to participate in the returns achievable from investing in a portfolio of Traded Life Policies (TLPs) issued by leading United States insurance companies.
TLPs that are acquired by the fund are purchased at a discount from their maturity value. In the majority of cases, the maturity value is fixed at the outset, which means that these assets are assured to increase in value to deliver an absolute return.
The assets of the Fund are valued on a monthly basis by use of an actuarial model that aims to equitably unwind the growth of the TLPs, making adjustments for claims experience and future premium liabilities, the result of which is an extremely smooth and predictable growth trend.
In recent years, institutional investors have placed a considerably greater focus on liability driven investment strategies, where they try to link the potential returns of assets to a fund's liability. There is no greater way of achieving this objective than by selecting a fund that aims to deliver extremely smooth and reliable levels of investment return.