Insurance Dedicated Fund Administration

MAS Advisors works closely with RIA subadvisors to create a diverse array of customized investment vehicles for variable life and annuity company separate accounts.

Our flexible investment process adheres to a strict set of rule-based protocols to  comply with IRC §817(h) diversification rules and reduce  investor control exposure  so that investments are suitable for private placement variable universal life insurance and variable annuity contracts.  

Our funds are designed specifically as Insurance Dedicated Funds (IDFs) so that Wealth Advisors can provide fee-based management of their client’s insurance assets.  IDF strategies are developed and advised by MAS Advisors in close collaboration with the Wealth Advisor who subadvises on one or more Fund Series.  Wealth advisors are compensated under a fee structure for advising on assets; not selling insurance.  

As advisors to the Fund, MAS Advisors shoulders all fund administration responsibilities, providing a comprehensive suite of platform services including accounting, reporting, and compliance.  Our exclusive focus on the IDF space solidifies our expertise, efficiency and responsiveness.

Investment Research & Due Diligence

Our team is continuously sourcing potential investment opportunities through its network of peer RIAs as well as via professional contacts, manager referrals, service providers, third-party platforms, and industry conferences.

As part of a sound risk management approach, MAS conducts investment and operational due diligence on all current and prospective managers, which includes a thorough understanding of investment processes and risk controls, onsite visits, legal and regulatory checks, and verification of service providers such as custodians and auditors, among other factors.

Portfolio Construction & Risk Management

As an independent asset manager, MAS Advisors conducts its investment process in-house, from economic research to investment selection. Whereas the former attempts to identify and forecast the most salient aggregate economic trends that drive investment returns, the latter focuses on utilizing that analysis to select the most appropriate investment vehicle to express such forecast in an investment portfolio.

Our open-architecture platform provides us unrestricted access to unique, best-in-class investment managers in a cost-efficient manner, eliminating unnecessary intermediaries. Our global investment universe encompasses a wide array of asset classes and products including, but not limited to, hedge funds, mutual funds, private equity funds, ETFs, stocks, and bonds.

The MAS Advisor asset management platform is based on academic research and is designed to create virtually unlimited qualified insurance-only portfolio strategies, from benchmark-constrained to absolute return strategies, and from factor-investing to other risk-based strategies - among others. Our investment process accounts for all relevant parameters and adheres to a strict risk management process to monitor investment portfolios once approved and implemented.

We place a special emphasis on volatility and liquidity management to cover policy-driven needs such as fees, policyowner loans, surrenders, and death benefit payouts. Importantly, since variable life insurance and variable annuity contracts enjoy tax-free compounding of returns, we have the flexibility to pursue alternative investment strategies that would otherwise be tax-inefficient. Hedge fund investment strategies create their own unique set of valuation and liquidity challenges including gates, lock-ups, hold-backs, and side pockets.

We continually review all strategies against current and forecasted economic conditions to assess their continued viability. Also, we continuously monitor investment performance against class benchmarks, to assess not only relative performance but also possible style drift, and look for material operational changes that might negatively affect future returns, such as manager departures, regulatory actions and persistent outflows in the case of funds.