Protected Asset TEP Fund offers security to investors in bear markets

The Protected Asset TEP Fund plc (PATF), urges experienced investors seeking protection from the bear market, to consider Traded Endowment Policies (TEPs) as an attractive and stable asset class in current volatile markets.

The Protected Asset TEP Fund’s investment strategy is to create and actively manage a carefully structured, low-risk portfolio of TEPs to deliver consistent capital growth. The Fund has maintained an impressive performance against World Indices, as the graph below demonstrates. Perhaps more importantly, the smooth line demonstrates the stability of performance and returns compared to volatile global equity markets.

With-profits endowment policies contain capital guarantees based on the sum assured and already declared bonuses, which cannot be removed. When traded as an asset class, they are usually in the middle of the lifecycle of the policy, and TEPs can offer stable annualised returns of between 7-9% on the initial investment.

Alastair Beattie, a spokesman for The Protected Asset TEP Fund, said: “TEPs are not yet a high-profile asset class in the UK market, although the life offices issuing the policies are among the largest and most stable financial institutions in the world. By only buying the very best quality TEPs, we’re able to deliver stable fund performance with lack of volatility, which is proving to be the preferred strategy as investors look to take shelter from volatile equity markets.

“Many assurers’ with-profits funds are performing well, and the nature of the asset class mix is suited to present market conditions. There’s been a surge in demand for policies underwritten by Aviva, Pru & L&G as these assurers are planning to release a portion of their ‘orphan assets’ – or accumulated funds – to policyholders.”

“These bonuses, combined with the intrinsic guarantees provide stable, attractive returns for experienced investors, and make the fund a real ‘safe haven’ in these worrying times.”

For more information, visit patf.co.im