Strategy – Solutions

Avon Capital currently considers the optimal business strategy to be adopted with regard to this asset class is via:
  • The establishment of institutional investment products where life settlements represent the underlying and can provide investment characteristics exhibiting high yield (long-term stable return profile) with low risk of default and minimal correlation;

  • The identification of high quality life settlement portfolios (and the establishment of related liquidity facilities) into which institutional capital can be backed (or further institutional investment products developed and marketed), proactively managed by Avon Capital to add value including by way of portfolio optimisation and rebalancing, revaluation to market-accepted and state-of-the-art methodology, enhanced governance and compliance (including adoption of investor supervision), and reduction in overall operating TER;

  • Consolidation of existing life settlement portfolios that may be uneconomic due to inherent lack of scale and portfolio diversification; and

  • Working with corporates for whom structured life settlement portfolios and/or related investment products (as above) can be used as part solution to address long-term asset-liability imbalances.
Avon Capital, in conjunction with Monument Capital Limited, has recently developed the Avon Monument Bond, an Avon Fund-backed institutional investment product that offers an attractive IRR, including annual income and significant longer-term equity upside, and which exhibits a very low risk of default.

The Monument Capital Bond will be available for subscription in Q3 2014.