Thrive Global Life Fund
Introduction
The Thrive Global Life Fund offers Australian clients the opportunity to gain an investment exposure to US Life Settlement Polices via a fund of funds structure.
A Life Settlement Policy involves the sale of an existing life insurance policy to a third party for more than its cash surrender value but less than its net death benefit. The policyholder receives a lump sum payment, and the buyer becomes responsible for paying future premiums and receives the death benefit when the insured passes away.
Fund objective
The objective of the Thrive Global Life Fund is to deliver a capital return by acquiring an interest in one or more offshore funds (Offshore Funds) with an investment exposure to a pool of US Life Settlement Policies.
Investment amount
$500,000
The Trustee has the discretion to accept an application for a different investment amount.
Investment term
The minimum investment term is one (1) year, however the Fund Manager recommends Investor holding onto their investment for four (4) years or more (Recommended Investment Term).
In the event that an Investor wishes to make a withdrawal before the end of the Recommended Investment Term, that Investor may incur costs associated with a withdrawal. (See IM for more information)
Management fee
The Trustee charges a base fee of $3,150 per month plus 0.47% per annum of funds under management for the part greater than $2,000,000.
Performance fee
ThriveInvestment Management will receive a performance fee of 20% of the surplus over a hurdle rate of 9.25% calculated on an annual basis and will be subject to a high-water mark.
Distribution policy
Distributions will be made on an annual basis (if any) net of fees and expenses.
Benefits and risks
- Upside
- Exposure to US Life Settlement Policies, an alternative asset class
- Low correlation to the US stock market
- Benefit from offshore fund manager(s) with audited track records
- Downside
- All investments carry risks and an investment inthe Fund is not a bank deposit.
- Withdrawals cannot be made at call and not without cost(s).
- Not a tax effective investment.
To deliver a capital return for Investors by acquiring an interest in one or more offshore funds (Offshore Funds) with an investment exposure to a US Life Settlement Polices.
The Investment Manager aims to achieve the following allocation for the Fund.
1. 80% of Fund assets be held as Interests in Offshore Fund(s); and
2. the balance be held as either one or more of the following:
(a) interest-bearing deposit at an ADI;
(b) exchange-traded fixed income securities;
(c) and/or investment grade fixed income securities.
It is important to note that this is a portfolio construction guideline only. Whilst the Thrive Global Life Fund will only acquire the kind of assets specified above, it can be expected that the representation of each kind of asset within the Fund Portfolio may deviate from this guideline.
Investments in Offshore Fund(s) will be either denominated in United States Dollars (USD) or Great Britain Pound (GBP). The Thrive Global Life Fund will exchange its Australian Dollars (AUD) into USD or GBP at the time of making an investment.
Contactour team for a copy of the Information Memorandum and Application Form to apply.
Open for subscription
This investment product is available exclusively to wholesale and sophisticated investors.
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