505 Highway 169 North, Suite 560

Plymouth, Minnesota 55441

505 Highway 169 North

Suite 560

Plymouth, Minnesota

763-225-6682

Marquee Fiduciary Advisors, LLC represents institutional investors in a sub-advisory, fiduciary capacity in managing life insurance portfolios.  We advise hedge funds, pension plans, charitable foundations, and private equity funds in constructing life insurance portfolios to meet the investment objectives of the fund.  Our clients have used life insurance portfolios to balance non-correlated investments, securitize a bond offering, collateralize real estate, and hedge longevity.

 

We take a five-step process in advising institutional investors: 1) understand our client's investment objectives and risk tolerance levels;  2) prepare risk/return stochastic modeling for the proposed fund;  3) develop a product acquisition plan; 

4) construct the portfolio; and 5) monitor the portfolio using our proprietary MarqueeStar portfolio management system.

Marquee Fiduciary Advisors will accept both discretionary and non-discretionary accounts. When we have discretion, we determine the best life insurance policies to purchase to meet the objectives of the client subject to our pricing and legal due diligence. We owe our client a fiduciary duty to invest and manage a life insurance portfolio as a prudent investor would in managing their own portfolio. On non-discretionary accounts, we recommend policies to purchase but the client makes the decision based on their own due diligence. 

 

Marquee Fiduciary Advisors may suggest life settlement providers and brokers to clients including an affiliated company. When we have discretion over purchase decisions, we have a fiduciary duty to only incur costs that are appropriate and reasonable. Using an affiliated company allows us to control and minimize transaction costs for the benefit of our client. Because of the potential conflict of interest, all transactions through affiliated companies are fully disclosed with complete compensation transparency and approved by the client in writing and in advance.

Step One:  Understand Objectives and Risk Levels
  

The first step in the life insurance portfolio management process is to understand our client's investment objectives and risk tolerance levels.  Is principal protection the primary objective? Is income or cash flow needed on a consistent basis? Is greater long-term growth worth the risk of market uncertainties?

 

Step Two:  Design Risk/Return Model
  

The second step in the portfolio management process is to prepare risk/return stochastic modeling for the proposed fund. Using actual policies that fit the criteria of the client, we model the risk/return characteristics of the fund based on its projected size, fund expenses, premium reserves, investor distributions, and profit waterfall. Please visit the Fund Simulator tab for more information on this step.

  

Step Three:  Develop Product Acquisition Plan

 

A portfolio can be constructed by aggregating individual policies or purchasing a portfolio of policies in the tertiary market. If individual policies are purchased from insureds, state regulations must be considered. Policies must be purchased through licensed Providers in regulated states.  As one of the oldest and most active firms in the life settlement market, we have multiple sourcing channels for both individual policies and portfolios.

 

Step Four:  Construct the Portfolio


After we know the mix of policies we are seeking and the sourcing strategy for acquiring those policies, the next step is price the policies that are submitted to us, analyze any legal and investment risks, and consummate the purchase of the best policies to meet our client's investment objectives and risk tolerance.


Step Five:  Monitor the Portfolio
  

Our clients have on-line access to their portfolio data using our proprietary portfolio management and reporting system called MarqueeStar. We provide performance reporting and monthly policy market valuations using a "mark-to-market" methodology that complies with Global Investment Performance Standards (GIPS). Please visit the MarqueeStar tab for more information on this step.