The Centurion Global Population Index (GPI) Structured Note offers a fixed annual coupon of 5%, in addition to a bonus. The bonus is dependent on the GPI, which aims to reflect the “actual to expected mortality experience” of people over 65, in Europe, North America and Australasia.
Potential returns increases with the actual mortality of the index. However, the initial investment is protected in the event that the mortality experience is lower than expected. According to Centurion, the data used to calculate the GPI comes from independent government sources.
David Rawson-Mackenzie, the company’s managing director, said: “Our research of Asian investors shows a strong interest in longevity investments and yet the number one reason, at 29%, for not exploring it to date has been a lack of time to research the asset class properly. So we decided to take longevity to Asia in a format that is relevant to the Asian market.”
Centurion will initially focus on Singapore and Malaysia, before targeting investors in other markets, including Vietnam and China. The company is also understood to be working with several platforms, with the aim of distributing its longevity-based funds in the region.
The Centurion Global Population Index Structured Note will open for investment on 30 March. Once invested, the issuer and the independent safe custody agent will provide finance to a “credit-worthy borrower”, who is able to provide quoted and/or unquoted assets as collateral.
Collateral will be valued independently and regularly by a valuation agent, Centurion said, and then held by an independent trustee for the duration of the finance agreement.