1. Information

"These are simple, transparent concepts that, with good timing, offer the best concrete returns on previous forecasts."

Frank Laan, founder of Quality Investments

Quality Investments introduced investment in life settlements to the Netherlands. In 2002, the founder, Frank Laan, explored the market, opened it up and brought it to public attention. The ethical side of selling life settlements (American life insurance policies) has been made completely clear. The more exposure that the new investment product got in the media, the more Quality Investments prospered. This is no surprise, because professional investors cannot fail to notice the successful formula of product transparency, high yields and a win-win situation for all concerned.

 

Having started from his native country, Frank Laan has now set up four branches and assembled a network of brokers. Feel free to contact us for more information on investing in our products.

 

2. Current Situation in Life Settlements

"The credit crisis has battered the savings of elderly Americans, leaving their life insurance policies as one of their more valuable assets."

The Economist

Trading in American life insurances has been possible for nearly a century. Only since 1996, when it received more publicity, have many older policy holders become aware of the real value of their policies. For policy holders, selling policies back to the insurance company is not particularly lucrative. Market forces provide alternative constructions, whereby a policy can be sold at its market value. Intermediaries, in the form of brokers, take over the policies and investors become the new beneficiaries. This means that policies, instead of being scrapped, can provide a windfall for the insured party and an interesting form of investment for investors.

The pioneering phase of the life settlements market is now long past: Americans are regularly reminded that they can sell their policy, and there are currently plenty of takers as savings dry up during the economic downturn. For their part, investors can find an increasing number of major players, such as the Deutsche Bank and the PME pension fund, which supplement their investment portfolios with life settlements.

In America, the face value (the sum of the assured value) of the policies amounts to many billions. Nobody can put an exact figure on the investments in Europe, but it is safe to say that hundreds of millions are involved. And the growth continues. More and more established providers of traditional investment products are now also focusing on life settlements; new players are also regularly entering the market.

QI is following developments with interest, but will mainly continue to develop in its supervisory role so that investors can be assured of excellent returns on their investment.

 

3. Investment Portfolio with Spread

"Various providers offer life settlements, but as part of a fund package. The return then turns out to be less than from a 'direct' investment in an existing life insurance policy."

Frank Laan, founder of Quality Investments

In an investment portfolio, adequate spread of risk is generally achieved by investing in 'steps' of about 5% of the total assets, depending on the form of investment. Equities, bonds and real estate are currently the most normal elements of the investment portfolio. In order to put together a sound package, a good advisor is essential.

Make sure you know about the provider you are dealing with. You can already get much information via desk research, for example by checking how long the company exists, how its cash flow stands and what the provider's track record is.

Quality Investments has a lot of financial expertise and can advise you on supplementing your investment portfolio with life settlements.

 

4. Financial Crisis

"The European economy is in the middle of the deepest and most widespread recession since the Second World War."

 Joaquin Almunia, EU Commissioner for Economic Affairs

The present economic situation is now described as an economic crisis or recession. This recession originated in the USA, where lenders issued risky subprime mortgages to low-income groups. These private individuals turned out to be unable to meet their obligations. The real estate market collapsed completely and one bank after other went down. This hit European banks very hard: they had invested in these defaulted subprimes. However, the real coup de grace came with the bankruptcy of Lehman Brothers, When this banking concern folded, the economic world collapsed like a house of cards.

An important player in the business of investing in life settlements remains completely unaffected: the life assurance company. The companies' solvency remains stable, which means they retain their 'A+' rating. In whatever case, the yields from life settlements are always completely independent of macro-economic developments. Quality Investments has a variety of financial specialists who can explain, in clear and well founded terms, the place of life settlements in relation to the world economy.

5. Future

"The best way to predict the future is to create it."

Peter F. Drucker, management consultant/author

It is very hard to see the current economic developments in perspective. The stock market seems to be stabilizing, but it does not appear that the crisis will be over quickly. According to Frank Laan, the founder and general director of Quality Investments, the turbulence can be expected to last some time: "I expect that the USA will be first to emerge from the crisis and that the dollar will then recover strongly. Europe will feel the aftershocks for years, especially because unemployment will increase dramatically. Furthermore, the USA is a 'patriotic' country, while Europe is very divided. This means America will emerge from the crisis much faster."

Only a crystal ball could tell us anything about the duration and consequences of the current economic situation. Market developments aside, we are now in an investment climate in which investors look for certainties. Impervious to stock market and interest fluctuations, life settlements fulfil this need.

 

6. Life Settlements Explained

 

"Crisis, crisis, crisis… but not for life settlements."

Dutch business news

 

A life settlement is an American life assurance policy. Since it was made possible to deal in life settlements, trade in this type of asset has been dynamic. They are popular because they can be viewed as the most secure investment at the present time. The transaction starts with the policy holder with a short life expectation; he sells his policy and immediately gets a percentage of the due sum. The investor becomes the new beneficiary of the policy. Because the time-to-realisation is short and the yield is high, there is a win-win situation for both parties.

Via Quality Investments you can invest in the CLSF dollar fund, the CLSF euro fund and the BGI Fund euro product. What these products have in common is that they mature within the stated duration of the contract or earlier, depending when the policy is due to be paid out. If the policy is paid out earlier than the agreed term, investors immediately get their stake back and the contract is terminated.

 

Right from the start, the founder of the Quality Investments concept has tried to keep lines of communication and cash flows transparent while guaranteeing the privacy of every stakeholder. That, together with the input of a reinsurer (which is in effect a reverse death risk insurance), makes the investment secure and reliable. Our specialists will tell you in detail about the structure of Quality Investments.

7. Policy Purchasing Explained

 

"The concept is safe and transparent. The buyer deposits his investment directly to the account of the escrow agent and the trust account, so that nobody else has access to the funds."

Jorre Appel, Director of Quality Investments Belgium

 

Policies are not bought in a hurry: the purchase is preceded by thorough investigation. The policies are offered to a broker in the USA. A lawyer evaluates at least 30 aspects of the policy. For example, have the premiums been paid? Has the policy passed the contestability period? Has it been pledged or used as collateral? Are the beneficiaries or surviving dependants co-signatories? Is the assurance company A+ rated? And has the life expectancy of the insured person been assessed on the basis of a recent examination? If the investigation is satisfactory, the policy is presented to the reinsurer, who assesses it again via his own investigative process. If the reinsurer also comes to a positive conclusion, the policy is purchased.

The policy and the reinsurance policy are assigned to a trust. In fact, the policy is sold to this trust, which is owned exclusively by the participants - the investors. At the end of the policy's term, the benefit is also paid out via the trust. Quality Investments has chosen this structure because the trust is irrevocable and nobody has access to the capital. This provides security for you, the investor.

 

 

8. Reinsurer

 

'The basic investment concept is fairly easy to understand.'

Financial Times

The maximum term is defined by contract with investors in the funds of Quality Investments. In order to guarantee this term, the policy is insured with a reinsurance company. Before this A+ rated company agrees to insure the policy, it is thoroughly analysed once again by specialists affiliated to the insurer. If the insured party dies before the end of the term, the life assurance company pays the benefit. If the policy passes the date stated in the contract, the reinsurance company pays out.

The policy is assigned to a trust. This trust is formalised by an agency of the U.S. federal government: the IRS. A trust is given a fiscal number, is checked annually by the IRS, and is obliged to draw up annual accounts.

 

Because the policy is assigned to the trust, investors in the policy are assured of privacy. A trust has a 'trust deed'.

This contains the trust's articles of association, stating at a minimum who are the beneficiaries of the policy.

 In other words, this annex (Exhibit II), names all the participants and specifies exactly how much is to be paid to the participants on the death of the insured party or when the reinsurer pays the benefit.

 

The legal structure serves to secure the investment made by the clients of Quality Investments. The investment route and the flow of benefit payouts are described in detail in the prospectus for the individual products. You can inspect the prospectus or request a copy via one of our offices.

 

9. BGI Fund

 

"Financial security gives peace of mind! That is what Quality Investments stands for."

MinkeBesseling, Marketing Director, Quality Investments

 

The BGI Fund is the first euro-based life settlements fund in the Netherlands. The investment, the payout on expiry of the term and the monthly dividends are all made in euro. This is a remarkable construction, because the fund buys life settlements for dollars, of course. One can participate in the BGI Fund for a minimum stake of € 75,000. The return of 8% on the investment is fixed and is paid out monthly in euro for the duration of the term (3, 4 or 5 years). Because the payment is made via an American trust, there is no withholding tax (a standard deduction in the USA) to pay.

An investment in the BGI Fund is safe and secure: the risk-bearing elements are fully covered. The term and your investment are guaranteed by the engagement of reinsurers and the interest payments on your investment are guaranteed by Certificates of Deposit (CDs). These CDs, purchased by an American bank, are in turn insured by the FDIC (Federal Deposit Insurance Corporation). Even if the bank were to go bankrupt, the state guarantees the interest on the invested capital. The absence of risk takes all the stress and emotion out of investing in the BGI Fund, leaving you with a safe, assured investment and a good night's sleep.

Please feel free to contact us for more information on the BGI Fund. We will be happy to send a prospectus on request.

 

 

10. CLSF

 

 

 

"Getting a return has never been so easy."

 

Frank Laan, founder and director of Quality Investments

 

The investment product with which Quality Investments achieved high returns for its clients is called the Closed Life Settlement Fund (CLSF). This fund is distinguished by the investment amount of $ 200,000, the guaranteed maximum term and a minimum effective return of 11%. A fund with an excellent yield for professional and institutional investors.

 

Due to the increasing need to cover the currency risk, the CLSF also has a euro fund. At the current rate of exchange, the minimum investment is € 168,500, producing a return of at least 10%. The 1% difference in yield in relation to the dollar fund is allotted to hedging the fund; this is organised entirely by Quality Investments. In all other respects, the euro fund is the same as the dollar fund.  

 

Engagement of a reinsurance company means that the maximum term (from 4 to 7 years) is guaranteed. You can therefore opt for a term of 4, 5, 6 or 7 years. The policy benefit is either paid out by the reinsurer after the set term, or so much earlier by the life assurance company on the death of the insured party. Only policies that fulfil the strictest selection criteria or purchased. In all cases, the policy holders are 75 or older and have a life expectancy of 4 to 7 years.

 

Quality Investments arranges the purchases and transfer of the policies for investors. Money streams are regulated via the trust. In addition, specialised notaries and lawyers are engaged to deal with contract transfers.

 

The CLSF has a minimum yield of 11%, but historically its average yield has been 17.5%. Thanks to the product's transparency and its imperviousness to economic, interest rate and stock market fluctuations, the CLSF is viewed as a sound investment with a very high return.

For more information, please feel free to contact one of our investment specialists.

11. The Founder

 

 

 

"I aim to create a sound organisation that achieves good returns for investors."

 

Frank Laan, founder and director of Quality Investments

 

He is ambitious, he has stamina and he dares to be an entrepreneur. This entrepreneur, Frank Laan, is the founder of Quality Investments, a company that is now active in 12 countries. "And this is just the beginning!"

 

In 2002, Frank Laan set out with the clear aim of finding alternative investment opportunities. In the USA, he came across life settlements and began studying the subject. While still in the orientation phase, he looked for partnerships with financial specialists, examined the views of the Dutch Financial Markets Authority on life settlements and investigated whether they could be marketed in the Netherlands. The opening of the first fund was not without hitches and setbacks, but, with sound motivation and a determination to make a success of this lucrative form of investment, the product was introduced a year later. His fundamental attitude has not changed, for Laan is still as certain as he was in 2002: "Quality Investments has a cast-iron concept with which unrivalled returns can be achieved. It was a totally new form of investment and I then decided that the organisation would achieve international fame." With four wholly-owned branches in Europe and a wide network of intermediaries, Laan is seeing his prediction come true. "And this is just the beginning: we are working to establish branches in France, the UK, Germany and Italy. We are also exploring possibilities in Asia and the Middle East." In short, there is no question of market saturation for the time being. "On the contrary! The product works, the organisation is sound and we are getting good returns for investors. As long as there are still large groups of investors unfamiliar with the product, Quality Investments and - above all - its investors have a lot to gain."

Frank Laan is the general director of the branches in the Netherlands, Belgium, Spain and Turkey. He can be contacted via head office in the Netherlands. If you want more information about the investment opportunities via Quality Investments, please contact your nearest branch.

 

12. Introduction to the Other Directors

 

Jorre Appel

Jorre Appel is developing the operations in Belgium and Luxembourg, creating tailor-made structures and setting up a distribution platform for high net-worth individuals (HNWI) and institutional counterparties.

QUALIFICATION: Licentiate in Financial and Commercial Science

 

CAREER: Worked for leading insurance companies (Aegon, Royal & Sun Alliance, Avero Achmea) in various management positions in sales, distribution, product development and marketing for over 12 years.

 

MOTTO: 'KISS' and focus on the desired outcome.

AMBITION: "Aim for the sky and enjoy getting there!"

 

Javier Martin

Javier Martin is developing the Spanish franchise for QI. He is also building up the QI Financial Advisor company, approved and regulated by the local Authorities.

 

QUALIFICATION: Meester (Dutch law qualification) Martin gained a Degree in Business Administration and International Finance at Florida International University.

 

CAREER: Javier Martin has developed his professional expertise in the investment banking industry. Prior to joining QI, he was in charge of the Southern European Equity Solutions Structuring Team at Goldman Sachs in London. Before that, he had similar roles at Barclays Capital- Equity Derivatives and Structured Products Group and Citigroup Global Markets in London and Milan.

 

MOTTO: "Add value to the clients' global financial service."

 

CAREER: Mr Martin has been in the financial industry for more than 16 years, playing important roles in different areas of investment banking such as equities and derivatives trading, Structuring, distribution, origination, syndication and innovation of alternative products for institutional clients, Private banking and private wealth management teams across Europe. He also played an active role in the definition, analysis and construction of senior clients' investment portfolios.

 

AMBITION: To develop a strong and solid life settlement platform in Spain.

 

Didier Adler

Didier Adler is developing the Italian and contiguous markets for QI.


QUALIFICATION: Meester (Dutch law qualification) Adler holds a Master of Science in Management from the Ecole de Commerce Solvay of the Université Libre de Bruxelles.

CAREER: Didier Adler has 30 years' experience in the financial markets both on the buying and selling side, with institutions such as Bankers Trust, NatWest Markets, Invesco. He was recently Managing Shareholder of a multi-family office in Milan.

MOTTO: "Innovate to generate real value for your clients."

CAREER:He has played a very active role in pioneering and developing derivative markets and absolute return products in Italy. Didier has delivered consistent returns and acquired direct experience of the major financial products and asset classes compounding investment portfolios (from fixed income to commodities, including equity options and FX).

AMBITION: To actively contribute to making QI the market leader in the life settlement business.