The financial services specialist in the growing senior life settlement asset class said it received US$7.6mln in subscriptions in October alone.
The growth in AUM is significant because some investors are prohibited from comprising more than a certain proportion of a fund’s assets, thus as the fund grows, so the range of potential investors grows.
The fund continues to perform well and is on course to provide a return within the 10% to 14% target range, Alpha Growth said. For the months of August and September 2020, the returns were 1.82% and 1.42% respectively.
The company said discussions with a warehouse loan/short term credit facility counterparty continue and are nearing a conclusive step but the counterparty’s coronavirus (COVID-19) policy is limiting its ability to conclude site visits to the company’s and its servicing agents’ US-based offices.
The group added that it has begun its promotion of the Alpha Growth & Income (AGI) strategy. As previously announced, this strategy is a combination of life settlements and life contingent structured settlements hedged by a life insurance policy that is suitable for investors seeking cash flow and growth, funded in either a separate managed account or as a co-mingled fund with a minimum investment of US$50 million.
“The impact of COVID-19 has no doubt influenced the timing of various counterparties to transact with the company. Over the past few months, it is evident that the management of the pandemic by various Governments is unpredictable and impacts the movement of individuals. In addition, the internal policies of counterparties pose some hurdles to concluding transactions in a timely fashion,” Alpha Growth said in the corporate update.
Nevertheless, management said the outlook for 2021 is positive, regardless of the outcome of the US elections.