An extremely interesting alternative investment category is that of US Secondary Market policies, also known as 'life settlements'. US Secondary Market policies entitle an investor to acquire the right to the maturity value of the life insurance policy. Secondary Market policies offer a return on investment that, in the event of early maturity, may be far in excess of the yield on investments in the capital market. The amount of the maturity value is fixed in advance, so that the investment capital is returned together with the yield on the investment in the form of the insured sum upon the maturity of the policy.

• Why Life Settlements?
• Volatility of global financial markets
• Diversification out of equities and bonds
• Similar returns to high-yield bonds
• Greater certainty of return

Secondary Market policies are part of the so-called alternative investments. Their allure lies in significantly higher returns, as well as in the fact that they are not exposed to fluctuations of the capital markets, thus improving the risk structures of the investor's portfolios. The foundation funds of American universities, for example, often invest more than half of their assets in alternative investments and have successfully managed to overcome the stock market slump of recent years using this strategy. Alternative investments will continue to grow in the coming years as a structural complement to traditional investments - both for institutional and private investors.

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