Banca March launches the first unit-linked product on the market to combine investment in liquid and illiquid assets
26 January 2022 Category: Products
March Vida and Banca March have launched UL European Revitalization, the first unit-linked insurance on the market designed to combine liquid and illiquid assets.
- March Vida, a wholly-owned subsidiary of Banca March, has launched UL Revitalización Europea, a long-term, unit-linked insurance plan which allows investors to combine liquid and illiquid assets in a single product.
- The product seeks to benefit from growth in the priority sectors under Next Generation EU: the digital transformation, environmental transition and European economic recovery.
- UL Revitalización Europea is designed for an adventurous investor profile who is looking to diversify into non-traditional assets and harness the illiquidity premium.
- The portfolio, which will comprise 80% illiquid and 20% liquid assets, will be managed exclusively by Banca March.
- In line with the Banca March Group's philosophy of co-investment, March Vida will contribute an additional 10% to the illiquid projects held in the portfolio.
March Vida and Banca March have launched UL Revitalización Europea, the first unit-linked product on the market designed to invest in both liquid and illiquid assets. The product seeks to harness the investment opportunities offered by the Next Generation EU recovery funds, which total over €800bn and will triple the EU's budget over the next three years, building a greener, more digital, more resilient Europe.
The majority of the assets held in portfolio - 80% - will be illiquid assets, diversified through private debt, private equity and venture capital. The remaining 20% will be invested in liquid equity assets, largely investment funds. The sector distribution of the investments is guided by the priority sectors for the EU recovery funds: 40% is allocated to the environmental transition, 40% to the digital transition and 20% to the recovery from the economic and social impact of the pandemic. In line with the Banca March Group's philosophy of co-investment, March Vida will also invest a further 10% in the illiquid projects held in the UL Revitalización Europea portfolio.
One of the greatest advantages of this product, which will be managed by the Banca March product team thanks to its outstanding track record in investing in illiquid assets, is that it allows adventurous investor profiles to secure the maximum possible diversification, investing in both liquid and illiquid assets and harnessing the illiquidity premium.
Another advantage is the product's accessibility, as the minimum investment is €25,000, significantly lower than the investments typically required to take positions in private equity or private debt funds. These advantages are in addition to the long-term approach inherent to these vehicles, as the expected duration of the product is between 10 and 12 years.
In a joint statement, Miguel Aquiso, Managing Director of March Vida, and the Banca March product team said: “At Banca March, we want to harness the potential of Next Generation EU to offer our customers the chance to invest in this ambitious economic recovery project, channelled through a unit-linked insurance product. This vehicle will allow for the selection of the best liquid and illiquid investment alternatives with a focus on the sectors set to play a key role in the recovery: the digital transformation, environmental transition and the European economic upturn itself. UL Revitalización Europea offers the perfect structure for investors who want to diversify into non-traditional assets and harness the illiquidity premium."
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