Author: Beat Hess

The return of life settlements stems ultimately from income exceeding expenses. The investment needs to be profitable, so it should be judged by its ‘cash-on-cash performance’. The net asset value (‘NAV’) performance, however, is different to the cash-on-cash performance, as various appreciations and depreciations of the portfolio are included in the NAV as well as the changing value of the cash account. The NAV curve of a fund serves various purposes. While its primary objective should be the reflection of the true and fair value of the assets, it’s also used as a marketing tool; the attraction of new capital…

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