Strategic Directions Alpha Fund

The key features

• CLOSED-END THIRTY MONTH FUND
• New and unique alternative investment concept
• Not linked to stock market or economic volatility
• Positive addition to a balanced investment portfolio
• Expected yield 20% for the 30 month term (Based on US Dollars) (Plus/less the exchange rate on the interest paid at the time of maturity) (Incentive fee sharing on yield exceeding 20%)
• New stable value asset class
• Beneficial interests in a Pool of policies from the major US insurance companies
• Minimum investment of CHF, Euro or US Dollar 100 Thousand
  Subsequent investment 25 Thousand
• Adherence to strict evaluation process to minimize risk

A unique concept

This Fund will be a series of Life Settlements Funds – providing a new and unique investment concept. Most significantly, the Fund has no correlation to stock, bond or currency markets and no correlation to economic or political volatility.

What is the Fund?

A medium term fund comprised of a large pool of whole Senior Life Settlements relating to insureds 65 years of age or older with an impaired state of health owing to recognised medical conditions, and with a life expectancy of six to twelve years and subject to economic review.

How does it work?

The Fund will seek to acquire a large pool of Senior Life Settlements where the insureds have life expectancies from six to twelve years and subject to economic review. Participation in a pool of Senior Life Settlement policies gives the Investor the opportunity to diversify the risk of maturities across several policies rather than one. The Fund intends to sell all outstanding interests between the 24th – 30th month after closing of the Fund.

Why this Life Settlement fund?

This Fund will be in a series of Life Settlements Funds - an innovative product representative of the investment world’s move toward measurable risk and predictable return.The Fund therefore represents a valuable addition to any balanced investment portfolio.

When can I expect to receive the return of my investment?

Distributions will be made to Investors at maturity. The Fund intends to sell any policies that have not matured between the 24th – 30th month after closing of the Fund.

The Offer

The Company is offering Units in the Fund subject to this Offering Memorandum. The minimum investment is 100 thousand, with subsequent investments of 25 thousand. Investors may subscribe in Euros, Swiss Francs or US Dollars.

Use of Proceeds

All proceeds, prior to being used to acquire interests in policies or pay transaction costs (including premiums) described herein, shall be held in escrow and deposited directly into restricted accounts at the US Escrow Agent, a federally chartered US financial institution with over $30 billion in trust assets. Proceeds shall be used only for (1) approved Fund fees and expenses that are specifically set forth in this Offering Memorandum; (2) the purchase of interests in life insurance policies from carriers rated A- or better insuring the lives on United States citizens 65 years of age or older, portfolio management cost; (3) the payment of transaction costs (including costs of collection on policies) and (4) the payment of policy premiums. The use of proceeds for acquisition of interests in Life Settlements will be detailed in a comprehensive Master Policy Purchase Agreement. US Escrow Agent will provide trust, escrow and securities intermediary services to Fund through a separate letter agreement.

Base currency

The base currency of the Fund is United States Dollars. Currencies at the time of investment will be appropriately hedged by the Fund’s Custodian.

What returns can Investors expect?

The Fund aims to return principal invested and achieve a cumulative return of 20% (based on US Dollars, plus/less the exchange rate on the interest paid at the time of maturity) over the 30 month period. Proceeds of the sale or other disposition of the Life Settlements or maturity of the underlying policies after payment of expenses will be paid first to the Investors until they have received their principal plus a preferred 20% cumulative return, then all remaining funds will be split 50% to the Investors and 50% to the Company Manager after 5% of the incentive fee in sales intermediary expense.

How risk is minimised

The Fund will adhere to a strict evaluation process, so that the reduced life expectancy of an insured can be accurately projected using comprehensive actuarial and medical models. The Fund will only purchase interests in policies issued by insurance companies licensed in the United States of America rated ‘A-’ or better by A. M. Best. The Fund will diversify its investment so that the portfolio will be aggregated within strict concentration limits of insurance carries, jurisdictions, and insureds.

The Fund’s principal investment objectives are:

• to invest in Senior Life Settlements with a projected life expectancy of the insured of between six to twelve years and subject to economic review;
• by investing in Senior Life Settlements, provide Investors with rates of return that are attractive in today’s general investment marketplace;
• to target Senior Life Settlements providing cumulative rates of return in excess of 20%, based on US Dollars, plus/less the exchange rate on the interest paid at the time of maturity over 30 months;
• to reduce risk and portfolio volatility;
• to diversify investment risk by pooling life insurance policies; and
• provide an alternative investment with no correlation to the stock and/or bond markets.

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