GlobalBridge Teams with Provident Trust Group to Integrate Life Settlements Into Traditional Retirement Portfolios

MINNEAPOLIS, Aug. 25, 2011 /PRNewswire/ -- In a world where stock markets can plunge 4% to 6% a day, GlobalBridge Inc. and Provident Trust Group LLC have launched a unique series of collective investment funds (CIFs) that shield U.S. retirees and other investors from an environment of elevated global risk.

The first of these portfolios, registered as Wealth Fund I, is currently the only investment product on the market that incorporates life settlements and conventional securities-oriented asset allocation in a form that 401(k) accounts and certain other retirement plans can offer to participants.

The rationale for bringing life settlements into retirement accounts is added diversification and the possibility of lower risk and higher returns.

"I first got interested in life settlements as a non-correlated asset class when I heard that a subsidiary of Berkshire Hathaway Inc. made some significant investments in these assets," explains GlobalBridge CEO Kelly Coughlin.

"And if it is good for Warren Buffett's company, it might just be good for our clients. Life settlements can generate stable income, but are not subject to the traditional market risks that stocks, bonds, and other asset classes face. By making these investments available in fully transparent unified managed account (UMA) structures, GlobalBridge and Provident are now bringing their unique benefits to 401(k) participants and other retail-level investors as well as institutional accounts."  

In a life settlement, policyholders sell or "settle" an existing life insurance policy to investors who then eventually receive the death benefit on the policy. While these policies are generally not liquid, when properly underwritten they can generate significant returns that are uniquely non-correlated to the global economy, credit risk, or prevailing interest rates.  

The fund further refines the life settlement investment process by incorporating various pooled life settlement vehicles along with GlobalBridge's existing asset management architecture, allowing participating advisors to gauge the risk and return characteristics of these vehicles in relation to stocks, bonds, and various alternative asset classes.

Wealth Fund I contains 80% life settlements, with the remaining 20% allocated to a well-diversified blend of traditional and non-traditional, non-correlated securities.

Aliya Lifespan LLC created the life settlement portion of the portfolio to mesh with the debt, equity, and other holdings that make Wealth Fund I unique in the life settlement space.

Theresa Fette, CEO of Provident, says the products fill a demonstrated need for 401(k) providers and sponsors to provide less volatile investment options to retirement plan participants.

"Being a self-directed IRA custodian, we have individual clients who had invested in life settlements for their individual accounts," she says.  "But we found that many of those same individuals were also business owners who wanted to add life settlements to their employer-sponsored plans as well."

In cooperation with Plano, Texas-based Retirement Capital, Inc., the initial roll-out of the life settlement CIF products has already started generating attention among retirement plan consultants around the nation.

Approximately 75 advisors are now actively selling Wealth Fund I and another 125 have signed up for training. Institutional investors are also investigating the product.

"In addition to the 401(k) accounts, Wealth Fund I has drawn extensive interest from third-party administrators, asset managers of pension and profit sharing plans, and portfolio managers," says Roger King, president of Retirement Capital Inc.

About GlobalBridge
GlobalBridge, based in Minneapolis, Minn., offers managed account platform services to trust banks and advisors for individual and institutional investors nationwide. GlobalBridge is the only company that offers complete open architecture in all major trust accounting systems, custodial relationships, investment vehicles, trading, and investment manager selection. For more information, visit www.globalbridge.com.

About Provident Trust
Provident Trust Group, based in Las Vegas, Nev., provides custody, trust administration, and self-directed retirement account services to institutional, corporate, and individual investors across the country. Provident has roughly 10,000 clients and $1 billion on its platform. For more information, visit www.trustprovident.com.

Press Contact:
GlobalBridge, Inc.
Kelly Coughlin
612-746-5851
[email protected]  

SOURCE GlobalBridge Inc.