The Cayman-domiciled company said the five year, index-linked note offers investors a fixed annual return of 5%, starting from the second year of its term, as well as a bonus at maturity based on performance of the index.
Managing director, David Rawson-Mackenzie said: “We think the GPI Structured Note offers an achievable steady annual return of 5% that would benefit most investment portfolios by diversifying away from high exposures to equities, bonds and commodities as highlighted by our market research.
“The GPI Structured Note is already launched in Asia and we have a lot of interest from financial advisers, wealth managers, family offices and private banks in the region.”
Once invested in the GPI Structured Note, the issuer and the independent custody agent will provide finance to a credit-worthy borrower who is able to provide quoted and/or unquoted assets as collateral. Collateral is valued independently and regularly by a valuation agent, and is then held by an independent trustee for the duration of the finance agreement.
The bonus is dependent on the performance of a Global Population Index, which reflects the actual-to-expected mortality experience of people aged over 65 in a pool of selected countries in Europe, North America and Australasia.
The decision to launch the note in Europe follows research by the company which revealed while 54% of European investors are interested in longevity, only 6% currently use the asset class in their portfolios. Centurion said the top reason for people not using the strategy was a lack of time to research the asset class properly.
