NEWS - 20

PDL International expands into Middle East and Asia

Mar 20, 2012, By Deborah Benn

Life settlements specialist, PDL International is expanding into the Middle East and Asia. Rising levels of wealth due to greater economic growth in these regions is creating demand for alternative investment solutions, according to PDL International.

Recent research suggests total assets under management in the Middle East alone could total $4 trillion. "We are witnessing a growing appetite amongst investors for assets whose performance is not dictated by financial markets. A key part of our strategy is to meet the rising demand for these products," says Sven Kuhlbrodt, Managing Director of PDL International.

Among the products PDL International will be distributing in the Middle East and Asia include an innovative range of UCITS-compliant alternative funds from Salus Alpha; Traded Endowment Policies, originating from UK With Profits life insurance policies traded onto the secondary market; and The Cascade Portfolio, a diversified portfolio of life settlements policies.

As part of this expansion, PDL International has appointed Keith Campbell Golding as Chief Representative for Middle East and Asia. Campbell Golding will market and distribute PDL International’s product range to institutional customers across the Middle East and Asia.

Campbell Golding has an extensive background in financial markets, with over 30 years in investment banking and in stock broking. He established one of the first holistic wealth management companies, two asset management companies for European banks, and has written extensively on the markets.

He has also worked as a main board director as well as running proprietary trading desks, managing fixed income and currency funds and developing key investment strategies for a global client base.

PDL International is the distribution arm of TIS Group and provides investment services to both institutional and retail clients in over 50 countries across the globe. The company offers a range of alternative investments. At its core are two insurance-linked investment strategies, Traded Endowment Policies and Life Settlements.

In addition to separate accounts, investors have access to the Protected Asset TEP Fund and the Cascade Portfolio. The latter offers investors the opportunity to invest in a diversified portfolio of life settlements policies.

PDL International also markets a UCITS compliant range of alternative funds on behalf of boutique asset manager Salus Alpha Capital.

NEWS - 9

Hedge Funds Review – Video: interview with Günther Schneider, hedge fund specialist, Salus Alpha

Salus Alpha, with $1.1 billion under management, believes investors want regulated products and has been offering its hedge funds and funds of hedge funds as onshore products since 2001.

From inception Salus Alpha was keen to offer investors transparency and liquidity, according to Günther Schneider, head of global business development and a hedge fund specialist at Salus Alpha Financial Service (Europe). He is proud of the fact that Salus Alpha, now with over $1.1 billion of assets under management in a variety of vehicles, was one of the first managers to offer daily liquid Ucits funds in all its hedge fund strategies.

“Ucits has become such a strong story recently,” said Schneider, but he believes investors need to approach alternative products by looking at the strategy as well as the asset managers’ capabilities to deliver performance. “Sometimes people talk too much about the vehicle and do not concentrate on the asset strategy under management,” he noted.

When asked if daily liquidity is more of a marketing ploy, Schneider is adamant that liquidity is “becoming more important” for investors. “If you look at markets and market conditions, people like the idea of having liquid portfolios. We’ve been offering daily liquid alternative investments since 2003 so we’ve been used to structuring products like that and offering it to investors. Yes, they like it. As soon as they see it is possible, they take advantage of [daily liquidity],” he stated.

In a wide-ranging interview, Schneider explained how he could offer an event driven strategy in a Ucits format as well as offering advice to other managers on the benefits of having an extensive network of offices close to investors. He said it was important to have a “presence on the ground”, particularly in the Asian markets. Salus Alpha has offices in Singapore and Hong Kong.

On the question of regulation, Schneider admitted new laws will “have an impact on all asset managers but hedge funds/alternative managers are more in the focus [as far as regulators are concerned] than others”. This, he said, was a good thing as he believes some of the issues being pushed by regulators, like transparency and liquidity, will be good for investors and the market in general. He advocated co-operation with lawmakers and active engagement, rather than sitting on the sidelines as politicians draw up new rules.

Schneider also talked about the attractions of managed futures for investors. He thinks investors will become more discriminating of which CTA/managed future fund managers they choose in future as those who do well in less favourable markets continue to offer strong performance compared with others.