Latest News

HC I Life Settlement Fund (the Fund) - Information on the termination of the Fund

Posted on Friday 16th August, 2013

Questions and Answers

1. What are the next steps?

The final proceeds of the Fund's redemption from the Master Fund have been received into the Funds accounts. Once the proceeds have been distributed the Funds accountants will prepare the Termination Accounts which are audited by the Fund's independent Auditors, Grant Thornton LLP. We expect to be in a position to send the Termination Accounts to the shareholders within two months of the date of this letter.

2. Why did the Master Fund price drop further in March 2013

On the 31 March 2013 the Master Fund's price dropped 9.1%. This was due to mortality estimates being extended by 21st Services, who are a major provider of life expectancy analysis for the Life Settlements market. The extension of mortality estimates significantly affected the value of the policies held within the Master Fund.

3. Why are you terminating the Fund?

The Fund invested wholly into the Strategic Life Settlements Fund I (the Master Fund) which is an Irish domiciled fund investing in life settlements. In the months following fund launch the Fund enjoyed good investor interest and attracted new subscriptions. However, in November 2011 the Financial Conduct Authority (then known as the FSA) issued a preliminary statement expressing, in summary, its strong concerns over the Traded Life Settlement Policy Investment (TLPI) market and in particular the appropriateness of TLPIs for UK retail customers not advised on the suitability of such an investment. Following this announcement, the FCA confirmed a timeframe for conducting a formal review of the TLPI market. This statement and formal review gave rise to a material number of investor redemptions in some offshore, unregulated, TLPI funds which in turn caused some funds to suspend dealing. Despite the Fund being UK domiciled, FCA regulated, and following an investment process (through the Irish fund into which the Fund invests) which we believe is aligned to market best practice, the Fund found it impossible to raise significant new investment.

4. You refer to an FCA statement impacting investor's appetite for TLPI products. Can I see this statement?

The FCA (then known as the FSA) published a number of statements and consultation papers on TLPI's. If you wish to review these documents please visit the FCA website www.fca.org.uk or contact Host Capital for further information.

5. Surely this negative investor sentiment would have passed?

In the period following the FCA statement Host Capital and UK ILS tried very hard to raise significant levels of new investment for the Fund. Despite this passage of time, investor and adviser sentiment has not materially changed and, sadly, we see little appetite for this asset class in the near future.

6. How has the Fund performed since launch? 

Share Class

Since Inception to Termination (estimated)
GBP-28.28>#/td###
USD-26.57>#/td###
EUR-16.83>#/td###

Source (Host Capital Limited) The above figures are unaudited.

7. Where can I get further information?

If you have further questions or concerns please contact your financial adviser or Host Capital on 0207 290 9490 or email us at info@hostcapital.com. Also, full information on the Fund can be found in the literature section of our website: www.hostcapital.com.

More Information

For more information about Host Capital and our range of innovative investment products then please contact us on +44 (0) 207 290 9490

Disclaimer

ARE YOU A RETAIL CLIENT (PRIVATE INVESTOR)?

A Retail Client is defined by the Financial Conduct Authority (FCA) as "a client who is neither a Professional Client nor an Eligible Counterparty". Retail Clients are deemed to have lower knowledge of financial markets and products and are therefore afforded greater protections and Firms may be required to provide additional information to them which they would not be required to provide to other clients.

This site is for individuals living in the UK, over 18 years of age. Users will not be engaged in the giving of investment advice and will be accessing the site for information on personal investments only. If you are not a UK resident and are not over 18 years of age please do not continue to use or access this site.

Retail Client

ARE YOU A PROFESSIONAL CLIENT OR ELIGIBLE COUNTERPARTY

(FINANCIAL ADVISOR, INSTIUTIONAL INVESTOR or AUTHORISED INTERMEDIARY)?

A Professional Client or Eligible Counterparty is deemed to have adequate knowledge, expertise and experience of financial markets and products, and is capable of assessing risk and making investment decisions. The Financial Conduct Authority (FCA) has clearly defined the criteria and classification of Professional Clients and Eligible Counterparty's.

This site is for UK Financial Advisors, Institutional Investors and Authorised Intermediaries who are authorised and regulated by the FCA. The contents are not for use by individual investors.

Professional Client

This site is designed for Retail Clients (Individual Investors), by entering this site you confirm you accept these terms as binding. If you do not accept these terms please do not continue to use or access this website.

Host Capital Limited is authorised and regulated by the FCA. This website is aimed solely at UK Investors and is specifically not aimed at parties who are residents of any other country where the funds referred to herein are not registered or approved for marketing and/or sale or dissemination of information on the funds or services is not permitted. The information contained within this site is not for distribution and under no circumstances is to be considered as an offer or solicitation to deal in investments in any jurisdiction in which such offer, solicitation or distribution would be unlawful, including but not limited to, the United States of America.

The distribution of information contained within this site may be restricted in certain countries by law or regulation and accordingly, parties who access it are required to inform themselves of and comply with any such restrictions that might apply. Parties interested in making any investment or accepting any service detailed within this site should inform themselves as to (i) the legal and regulatory requirements within their country of nationality, residence or domicile; (ii) the tax consequences which might be relevant to the acquisition, holding or disposal of any investment and; (iii) any other requirement or restriction which they may encounter.

Host Capital Limited does not provide and nothing contained in this website should be deemed to constitute the provision of financial, investment, tax or any other professional advice in any way. This site does not constitute or form part of any offer to issue or sell, or any solicitation of an offer to subscribe or purchase any investment nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Retail Clients (as defined in the rules of the FCA) should seek the assistance of a Financial Advisor. The information contained within this site is strictly confidential and may not be reproduced, distributed or published by any recipient for any purpose without the prior written consent of Host Capital Limited.

No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this website by Host Capital Limited or any of its directors or employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this site.

The value of investments can fluctuate and may be affected by movements in exchange rates. Investors may not get back the full amount invested. Past performance is not a guide to the future. The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution, publication or use would be contrary to local law or regulation or in which Host Capital Limited does not hold any necessary registration or license. Individuals or legal entities in respect of whom such prohibitions apply, whether on the grounds of their nationality, their place of residence or on other grounds, must not access or use this website.

By clicking the button below to accept this Important Disclaimer, and by using this website, you confirm that you accept these terms as binding. We reserve the right to change the terms of this Disclaimer without notice, and by accessing or using the website, you agree to abide by such changes.

This site is designed for Professionals Clients, Eligible Counterparties and other intermediaries authorised in the UK by the Financial Conduct Authority (Institutional Investors and Advisors). If you are not a Professional Client, Eligible Counterparty or other authorised intermediary you should not proceed.

Host Capital Limited is authorised and regulated by the FCA. This website is aimed solely at UK Investors and is specifically not aimed at parties who are residents of any other country where the funds referred to herein are not registered or approved for marketing and/or sale or dissemination of information on the funds or services is not permitted. The information contained within this site is not for distribution and under no circumstances is to be considered as an offer or solicitation to deal in investments in any jurisdiction in which such offer, solicitation or distribution would be unlawful, including but not limited to, the United States of America.

The distribution of information contained within this site may be restricted in certain countries by law or regulation and accordingly, parties who access it are required to inform themselves of and comply with any such restrictions that might apply. Parties interested in making any investment or accepting any service detailed within this site should inform themselves as to (i) the legal and regulatory requirements within their country of nationality, residence or domicile; (ii) the tax consequences which might be relevant to the acquisition, holding or disposal of any investment and; (iii) any other requirement or restriction which they may encounter.

Host Capital Limited does not provide and nothing contained in this website should be deemed to constitute the provision of financial, investment, tax or any other professional advice in any way. This site does not constitute or form part of any offer to issue or sell, or any solicitation of an offer to subscribe or purchase any investment nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore.

The information contained within this site is strictly confidential and may not be reproduced, distributed or published by any recipient for any purpose without the prior written consent of Host Capital Limited.

No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this website by Host Capital Limited or any of its directors or employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this site.

The value of investments can fluctuate and may be affected by movements in exchange rates. Investors may not get back the full amount invested. Past performance is not a guide to the future. The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution, publication or use would be contrary to local law or regulation or in which Host Capital Limited does not hold any necessary registration or license. Individuals or legal entities in respect of whom such prohibitions apply, whether on the grounds of their nationality, their place of residence or on other grounds, must not access or use this website.

By clicking the button below to accept this Important Disclaimer, and by using this website, you confirm that you accept these terms as binding. We reserve the right to change the terms of this Disclaimer without notice, and by accessing or using the website, you agree to abide by such changes.

Disclaimer

HOST CAPITAL LTD IS AUTHORISED BY THE FINANCIAL CONDUCT AUTHORITY (FCA) HOWEVER IT DOES NOT and WILL NOT OFFER, PROMOTE OR PROVIDE ANY FINANCIAL ADVICE.

NOTHING CONTAINED IN THIS SITE IS OR IS INTENDED TO BE AN OFFER OR PROMOTION BY HOST CAPITAL TO PROVIDE FINANCIAL ADVICE.

IT IS IMPORTANT TO NOTE THAT:

  1. THE INFORMATION AND DOCUMENTATION CONTAINED WITHIN THIS SECTION OF THE WEBSITE ARE ONLY FOR THE USE OF PROFESSIONAL INVESTORS OR FINANCIAL ADVISORS WHO ARE AUTHORISED BY THE FCA.

The distribution of information contained on this website may be restricted in certain countries by law or regulation and accordingly, persons who access it are required to inform themselves of and comply with any such restrictions that might apply. Persons interested in making any investment or accepting any service detailed in this website should inform themselves as to (i) the legal and regulatory requirements within their country of nationality, residence or domicile; (ii) the tax consequences which might be relevant to the acquisition, holding or disposal of any investment and; (iii) any other requirement or restriction which they may encounter.

In particular the information is not for distribution and under no circumstances is to be considered as an offer or solicitation to deal in investments in any jurisdiction in which such offer, solicitation or distribution would be unlawful, including but not limited to, the United States of America.

By clicking the button below to accept this Important Disclaimer, and by using this website, you confirm that you accept these terms as binding. We reserve the right to change the terms of this Disclaimer without notice, and by accessing or using the website, you agree to abide by such changes.