Carlisle Management Company becomes signatory to the UN PRI2 January, 2019
Luxembourg, January 2, 2019 – Carlisle Management Company SCA, the Luxembourg-based alternative fund manager, has announced that it has become a signatory to the United Nations Principles for Responsible Investment. According to the UN PRI official website, the Principles were launched in April 2006 at the New York Stock Exchange and are aimed to achieve the sustainable global financial system by encouraging investors to use responsible investment to enhance returns and better manage risks, fostering good governance, integrity and accountability; and by addressing obstacles to a sustainable financial system that lie within market practices, structures and regulation. Since then the number of signatories has grown from 100 to over 1,800 and includes some of the leading names within the investment management community. It requires its members to publicly report on the responsible investment activity through the annual Reporting Framework.
“Recent research, including Credit Suisse Survey of Hedge Fund Investor Sentiment, shows that Environmental, Social and Governance (ESG) makes its top strategy preference debut as allocator interest grows. A quarter of investors currently have an allocation to the strategy. Carlisle has recognized how much of an importance this plays and have taken proactive steps in adopting ESG principles.” Stated Tim H. Mol, Carlisle’s Chief Operations Officer. “The Life Settlement proves to be perfect example of an ethically and socially responsible investment. Whilst the asset class yields attractive risk-adjusted returns the market itself developed out of necessity. It emerged, in the first instance, due to policy holder’s need to recover some of the sunk costs of the insurance policy and release additional capital to improve their quality of life and sponsor further long-term health care needs.”
While utilizing similar mortality underwriting basis as pension funds and insurance companies the Life Settlement market provides a vital role to consumers by recovering sunk costs for insureds who no longer need, want or can afford their policies and by removing a financial burden from the insured due to the reduction of the ongoing cash requirements. Based on Deloitte studies, the Life Settlements market has rescued over 31% of the intrinsic economic value of life insurance for senior consumers. Value that would otherwise end up as a profit for the insurance company and therefore would represent a loss for the insured.
Milliman and Robertson, a leading actuarial consulting firm, wrote in a 2004 letter that 88%of all universal life policies and 85% of all term policies never result in a death claim. These unfulfilled policies, which seniors surrender or allow to lapse, may be eligible to sale in the life insurance secondary market (‘LISM’).
“The life settlement market has helped significantly in enhancing the welfare of policy-owners
by receiving more than eight to ten times the cash surrender amount.” Added Jose C. Garcia, Carlisle’s Chief Executive Officer. “With UN PRI adoption Carlisle stays at the forefront of the investors requirements.”
About Carlisle Management Company
Carlisle Management Company SCA (CMC) is a Luxembourg based fund management firm with a global client base that includes pension funds, asset allocators, institutions and investment funds. Focused on the US secondary life insurance market known as life settlements, Carlisle specializes in alternative asset strategy consulting and life settlement fund development. Carlisle also is a provider of alternative risk finance and secondary market insurance product consulting. For more information on Carlisle and its life settlement services, please visit the website at www.cmclux.com or call +352.268.45359.
The PRI is the world’s leading proponent of responsible investment working to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole. The PRI is truly independent. It encourages investors to use responsible investment to enhance returns and better manage risks, but does not operate for its own profit; it engages with global policymakers but is not associated with any government; it is supported by, but not part of, the United Nations. You can visit their website at www.unpri.org.
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