EEA Life Settlements fund to reopen to investors
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The EEA Life Settlements fund is preparing to reopen to investors after policy maturities of more than $75m (£48.3m) were paid into the fund.
The sum from 46 policy maturities was paid into the fund between December 1, 2011, and June 1, 2012.
The payments were made after dealing in the fund was suspended following a wave of redemption requests sparked by the Financial Services Authority (FSA) labelling traded-life policy investments as “toxic”.
Peter Winders, marketing director at EEA, says: “These latest figures show that the underlying assets of the fund continue to perform as expected.
“One of the options likely to be offered to investors wanting to redeem when the fund reopens is to move their investments into a run-off vehicle.”
He adds: “The experience of the last few months underlines how the fund is continuing to benefit from maturities at significant rates and will bring reassurance to those who might be considering this option.” (article continues below)
Investors in the EEA Life Settlement fund are to be offered three options: remaining invested, opting for run-off shares that will see money returned as policies mature, or the selling off of holdings to institutional investors at a discount.
According to EEA, the fund’s net asset value has increased by 3.55% in the five months since trading was suspended.
Winders says: “Life settlements is a historically non-correlated and low volatility asset class that is able to produce stable and consistent returns even through periods of stock market turmoil, such as we have experienced in the past six months.
“As such, the asset class is likely to remain attractive to sophisticated individual investors and institutions in the UK and globally.”
EEA has previously attacked the FSA for its criticism of the asset class, in which it claimed the products should not be recommended to retail investors.
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Readers' comments (2)
Grace` | 12 Jun 2012 6:48 pm
Welcome back to a good company and product. Apparently the FSA's irresponsible actions and faulty dialog could not compare to a well run investment structure.
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Anonymous | 19 Jun 2012 3:24 pm
This whole episode confirms the FSA is not fit for purpose, never was and never will be.
The EEA Life Settlements Fund continues to perform very much as expected. It was not and is not the same as the Life Settlement funds within/linked to Structured Products. Margaret Cole failed totally to understand this and the FSA's unwise and unsolicited comments led to a potentialrun on the fund. They caused a problem that was never there. How can we have any faith or trust in an organisation headed by Hector Sants.
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