Alternative Investing Through Private Placement Life Insurance and Variable Annuities (Wells Fargo)

Highlights from Wells Fargo Prime Services’ On the Horizon Conference Series

KEYWORDS:

Authors:

Wendy Beer, Director, Head of Business Consulting, Wells Fargo Prime Services

Organizations:
  • Wells Fargo Prime Services

Summary:

Investing in alternative asset managers through Private Placement Insurance products – PPLI (Life Insurance) or PPVA (Variable Annuities) – through Insurance Dedicated Funds (“IDFs”) is a growing trend in tax-sensitive investing. Managers have found that these fund structures may help attract incremental AUM due to certain tax features and may provide clients with investment returns that accumulate on a tax-deferred basis (through variable annuities) or are fully exempt from income tax (via life insurance).