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 Reports and Commentary from the Investment World

Reports and commentaries are posted here on a regular basis.


Allianz Dresdner Endowment Policy Trust 2009.


Allianz Dresdner Second Endowment Policy Trust plc 2009.

With Profit policies have been one of the most hated classes of investment in the UK over the last 4 years.   With Profits Endowments have gone from the cautious investor’s favorite to deeply unfashionable. But, as we know, often the best way to make money is not to follow the crowd. This could now be the case with endowment policies, as there are more sellers than buyers.

There is one Endowment Trusts that we now consider to be at a deep discount to their true worth at maturity:   

With volatility increasing in the Equity markets these trusts can provide a safe haven with returns better than those on offer at the Banks and Building Societies.

Often last year's dogs can become next year's star performers. This could be the case with Second hand Endowment policy trusts. 

Top 10 Holdings %
Standard Life 27
Legal & General 14.8
Prudential ( Scottish Amicable) 8.8
Scottish Widows 6.5
Aviva (Norwich Union) 6.5
Prudential 4.5
Scottish Life 3.9
Clerical Medical 3.3
Friends Provident 2.9
Scottish Provident 2.7
Total 80.9
  Estimated maturity values at 31.03.2005
Current Share Price 132.50p
EMV 155.1p
EMV (20% cuts) 145.1p
Wind up date 31.12.09

Returns to shareholders are intended to be entirely in the form of capital growth, as an efficient way for investors to participate in the mid – term endowment policy market. The Trust has invested in policies from a wide range of U.K Life companies, mostly household names.

The policies have been in force between 5 – 20 years, and will be held to maturity before winding up on 31st December 2009.
*Assumes no further demutualisations , receipts or death benefits and no further purchases or sales of policies.

 Discount to net asset value = 9.5%

Buy Allianz Dresdner Endowment Policy Trust up to 140.00p


Disclaimer: All the information above is provided as a service for individuals and institutions. It should in no way be construed as a recommendation as an investment. Investment decisions should be based on the risk tolerance and planning horizon of the investor. Market participants must understand that past performance is also not a guarantee or predictor of future results.