Mantis announced today it had partnered with Aussie TEP Management Pty Ltd to help distribute The Aussie TEP Fund. “TEPs”, or traded endowment policies, are second-hand conventional life insurance policies that can offer attractive and predictable returns, backed by insurance companies’ statutory funds and balance sheets. While savvy family offices and institutions have been active in the space for decades, the challenge has always been how to access the underlying investment opportunities at scale and in a modern format for investors. The Aussie TEP Fund has an exclusive sourcing arrangement for the policies with The Outlook Group Pty Ltd, who have in turn built a virtual monopoly in the space through relationships with insurance companies and financial planners spanning two decades.
“Historically, Endowment Policies have shown significant growth in value. Many owners of these policies decide their policy no longer meet their needs and seek to surrender the policies back to the Life Company that issued them. By leaving the policies early, this creates an opportunity for an investor to acquire the policy, convert it to a fixed maturity date, (this results in the policy name changing to an Endowment Policy), and hold this to maturity to enjoy the “full value” of the assets backing the policies. The Aussie TEP Fund intends to take advantage of this opportunity by acting as a purchaser of TEPs and holding them to maturity. We are very excited to be partnering with Mantis Funds to bring our unique product to Australian investors via a managed fund format.” said Brad Traynor, Aussie TEP Management’s Managing Director.
“There are not too many asset classes out there today that offer liquidity, statutory title, underlying A-rated asset backing and tax credits while still yielding significantly more than cash and term deposits. TEPs are one such asset class, that until now have only been accessible to a handful of private investors/institutions. TEPs are uncorrelated to traditional fixed interest assets and aren’t typically exposed to capital losses in a rising interest rate cycle. Brad and his team have spent twenty years laying the ground work necessary to provide Australian investors access to the multi-billion dollar TEP market via the new wholesale fund structure. Aussie TEP Management Pty Ltd are delivering exactly the type of unique, absolute return product we believe investors are seeking and we welcome them to the Mantis Platform” said Damien Hatfield, Partner and Head of Distribution at Mantis Funds.
For more information, please contact Damien Hatfield, Mantis Fund’s Head of Distribution, via e-mail (damien.hatfield@mantisfunds.com) or at 0400 560 240. You can also visit www.mantisfunds.com.
About Aussie TEP Management
The Outlook Group Pty Ltd, (and via their associate, Aussie TEP Management Pty Ltd), are Australia’s leading specialists in sourcing Traded Endowment Policies, (TEPs), for Investors.
With a deep understanding of this complex product offered by Australian Life Companies over the last eight decades, they bring a unique team of personnel and systems expertise to sourcing and managing a large pool of TEPs. With proprietary software developed over 20 years, our team can efficiently source TEPs and manage TEP administration until maturity payments from the Life Companies.
About Mantis Funds
Mantis Funds was launched in 2020 by industry veterans Damien Hatfield, Timothy Cheung, David Gray and Mark Paton. Mantis helps its boutique alternative investment manager partners deliver alpha to end-investors through its virtually integrated distribution and operations platform. Mantis has eight boutique partners spanning a range of actively managed strategies and asset classes. The managers are DSM Capital Partners(global growth), Dalton Street Capital (Asia absolute return), Firth Investments (small-cap Asia fundamental),Gyrostat Capital Management (equity income), Terra Capital (small-cap resources), Vantage Point Asset Management (global macro), Arrano Capital (blockchain and crypto) and Aussie TEPs (traded endowment policies). Tribeca Investment Partners are a strategic shareholder in Mantis.
Disclaimer: The material contained in this communication is general information only and has been prepared by Mantis Funds Pty Ltd(“Mantis”) a Corporate Authorised Representative of Mantis Financial Group (“MFG”), AFSL 492452. It is not intended to take the place of professional advice and you should not act on any information made in this communication without first consulting your investment advisor in order to ascertain whether the information is appropriate, having regard to your investment objectives, financial situation and particular needs. Nothing in this communication shall be construed as a solicitation to buy or sell a security or to engage in or refrain from engaging in any transaction. Mantis believe that the information contained herein is correct at the time of compilation. However, Mantis provide no representation or warranty that it is accurate, complete, reliable or up to date, nor does Mantis, or MFG accept any obligation to correct or update the opinions (if any) in it. The opinions (if any) expressed are subject to change without notice. Mantis and MFG do not accept any liability whatsoever for any direct indirect, consequential or other loss arising from any use of the material contained in this communication. This communication may refer to the past performance of a person, entity or financial product. Past performance is not are liable indicator of future performance. Investors should obtain the relevant product disclosure statement and consider it before making any decision to invest.
