Design and Manage Separately Managed Accounts
We design PPLI Compliant SMA portfolios for variable insurance companies for allocation by clients that own private placement life insurance (PPLI) and variable annuities (PPVA). We utilize a rules-based process to create a wide array of qualified insurance-only portfolio strategies, from benchmark-constrained to absolute return strategies, and from total return to other risk-based strategies. Importantly, since PPLI and PPVA contracts enjoy tax-free compounding of returns, we have the flexibility to pursue alternative investment strategies that would otherwise be tax-inefficient such as private credit, private equity, and hedge funds.
We utilize multiple custodians, which facilitates the onboarding process and approval process with carriers. Our strong relationships with top carriers and deep knowledge of PPLI allows us to effectively manage the SMA onboarding process.
In certain cases, we will act as an investment advisor and advise on the design and management of an Insurance Dedicated Fund.
Curate a Dynamic Alternative Asset Platform
Given the importance of low volatility to PPLI case design and management, MAS Advisors places a special emphasis on low volatility asset classes that are market neutral or have limited exposure to the public securities markets but have sufficient liquidity to meet the needs of the policy design.
Our global investment universe encompasses a wide array of well-regarded low volatility alternative asset classes and investment vehicles such as private credit funds, market neutral hedge funds, longevity assets, CLOs, fixed income relative value funds, and real estate assets, particularly multi-family housing. While we limit exposure to more volatile asset classes, we do permit some exposure to strategies that seek greater alpha.
We systematically review all strategies against current and forecasted economic conditions to assess their continued viability. Importantly, we monitor investment performance against benchmarks, to assess not only relative performance but also style drift, while looking for material operational changes that might negatively affect future returns, such as manager departures, regulatory actions, and persistent outflows.
Advise on PPLI Policy Plan Design
PPLI commences with an assessment of the insurance viability of a plan. This is a core part of the firm’s value proposition. MAS utilizes its own illustration tools to allow us to assess the best design structure for a particular case. Whether it is a MEC or Non-MEC a CVAT or GPT tax compliance test, or an Option 1 or 2 death benefit structure, we are knowledgeable about the key design elements that are fundamental to assessing a PPLI Plan and then enabling us to properly design an investment plan that is compatible. All initial PPLI Policy design assessments are accomplished on a carrier agnostic approach and focus on the tax benefits of the expected investment plan.
Deep Knowledge of Tax Efficient Investment Plans
Designing compliant Investment Plans requires a deep knowledge of IRS Code Section 7702 and particularly, Section 817, as well as accompanying regulations and private letter rulings. MAS Advisors has deep experience and knowledge necessary to design and manage a PPLI compliant portfolio and to have that portfolio approved by a PPLI carrier.