Assured’s traded life settlement fund is generating a steady return of between 9 and 11 per cent, according to fund manager Policy Selection, making it attractive to high net worth investors, particularly those in the UK claims the company.

The fund, which invests in US senior life settlement policies, has continued to perform well despite the unprecedented volatility seen in the markets over the last year.

Assured Fund is comprised principally of institutional investors, primarily pension funds, hedge funds, private banks and life offices.

However, the fund has drawn those seeking a refuge from the troubled equities market, with private investors now representing half of the fund’s total holdings.

"Investors face tremendous difficulties right now, with Bank of England base rates at their lowest level in half a century," said Policy Selection’s finance director Andrew Walters.

"While the sterling corporate bond market is enjoying a modest revival, currently yielding nearly 9 per cent, the market remains vulnerable to massive volatility, and this is frankly an asset class that can just as easily head dramatically south," said Mr Walters.

Assured Fund, which only buys traditional life settlements, has gained private investment from around the globe - 33 per cent coming from the UK, 20 per cent from Switzerland and 17 per cent from Korea.

Policy Selection was established in 2003 to specialise in the US senior life settlement market.  Registered in the Cayman Islands, the company has approximately $396 million in assets under management.  Assured Fund is an independent company with its own board of directors.