Investment Strategy
Objectives and focus
Ress Capital manages the alternative investment fund, Ress Life Investments A/S. The fund’s objective and investment strategy are to invest in securities ensuring an exposure to the secondary market for US life insurance policies. The aim and focus are to maintain a balanced portfolio of life insurance policies that will offer investors’ attractive and uncorrelated returns over time in a sustainable manner.
A focus for the business is to act in a responsible and prudent manner. The company values honesty, openness, and high ethical standards in business relationships. The company shall respect human rights, denounce corruption, bribery, and payoffs, as well as money laundering. The company shall also strive to create good health and well-being regardless of whether this pertains to their employees, customers, owners, or other stakeholders.
Ress Capital shall comply with applicable legislation and international conventions on all markets where the company is active. The company shall comply with environmental legislation, agreements, safety requirements and other binding requirements and regulations.
Our fund promotes environmental or social characteristics but does not have sustainable investment as its objective. The fund exclusively promotes social characteristics and engages in responsible investments through two strategies: 1) Exclusion and 2) Impact.
Exclusion
Ress Capital, as a manager of the fund Ress life investments, only invest through counterparties who are registered and authorised according to the state legislation in the state where the transaction takes place, often the State Insurance Commissioner. We premiere business with intermediaries who support improved transparency in the secondary market for US life insurance policies.
Furthermore, Ress Capital excludes investments in life insurance companies, where life insurance policies are issued, engaged in activities inconsistent with the moral values and ethics of investors or in violation of global standards aligned with international conventions on human rights, labor laws, environmental practices, and anti-corruption measures. This includes adherence to at least the Global Compact or the OECD guidelines for multinational corporations.
Impact
Ress Capital actively engages in impact efforts, advocating for positive change among our collaborators. We strive to influence and collaborate with our corporation partners to align with ethical and sustainable practices. Ress Capital is active in promoting and supporting investor initiatives aiming at improving the consumers’ rights when selling their life insurance policies. To enable the individual household to make an informed decision, it is important that the sales process is transparent.
In addition, Ress Capital is an active member of the trade organisations ILMA (Institutional Longevity Markets Association) and ELSA (European Life Settlement Association) that support such initiatives.
Transparency
Investor relationship and client needs is a key aspect when conducting business for Ress Capital. A high degree of transparency, dialogue, and clarity guides Ress Capital’s relationship with its customers. Complaints procedures and investor support should be efficient, thorough, and handled with professionalism.
The secondary market for US life insurance policies is regulated in most US states. The legislation regulating the market is there to safeguard the individual policyholder’s, i.e. the consumer’s interest. The legislation aims to protect the consumer’s freedom of choice and ensure that the sales process is transparent and correct. Consequently, brokerage fees must be reported in a clear and transparent manner to the consumer.
Proportion of investments in ESG and non-ESG assets
Ress Life Investments holds assets of three kinds: 1) US life insurance policies, 2) US Treasury bills, and 3) Cash deposited with US and European Union banks. The proportion of US life insurance policies in our product is approximately estimated to be 85-95% of the total portfolio assets. The part of our portfolio that consists of US life insurance policies will consequently have to fulfill the sustainability criteria defined. Holdings in US Treasury bills and cash are for liquidity management purposes only.
Ress life investments do not consider the EU Taxonomy, as the asset class is not in scope of the EU Taxonomy, nor are the companies who are our counterparties in scope of Taxonomy reporting. The total turnover from Taxonomy aligned activities is thus 0%.
