Life Settlements Fund suspended...
The WAY Group Newsletter for Financial Advisers | December 2011
EEA Life Settlements Fund suspended - announcement from the Board of EEA Life Settlements Fund PCC Limited...
Following a meeting on 30 November 2011 of the Board of Directors (the "Board") of EEA Life Settlements Fund PCC Limited (the "Fund"), the Board has declared an immediate suspension of the valuation of the net asset value of all classes of participating shares in each cell of the Fund and of the issue, sale, purchase, redemption and conversion of shares of each such class, which the Board is entitled to do in accordance with the Fund's articles of incorporation and offering memorandum.
The above announcement has been made in respect of the EEA Life Settlements Fund and this will have relevance to some investors in WAY funds and their advisors. This action has been taken to protect the interests of EEA shareholders following the unprecedented series of redemption requests received this week following statements by the FSA (Financial Services Authority) on Traded Life Policy Investments in general.
WAY markets a separate cell of the EEA Life Settlements Fund and the WAY Global Cautious Portfolio has a holding in the EEA fund. The decision to invest in the fund was taken after the appropriate due diligence and we have continued to be comforted by the transparent nature of the fund operation. Investors will also have seen consistent positive returns on their holdings through this turbulent market period.
Their decision to suspend dealing means that further subscriptions to the WAY cell are also suspended accordingly and existing holders of the cell will not be able to realise their assets for the time being. Further announcements will be made and all interested parties kept informed.
It is important to state that the underlying assets of the fund - the relevant life policies and cash - remain at the same value as before this announcement. The decision to suspend dealing is to prevent the enforced sale of a proportion of those policies at a discount to value in order to meet the redemption demand, thereby creating a negative impact on the fund valuation for the remaining shareholders.
As previously stated, we will keep everyone informed after a further assessment has taken place.
Yours sincerely,
Eddie O'Gorman
Director of Sales & Marketing
WAY Group Limited
2nd December 2011.
– Ends –
How to contact us
If you wish to discuss any matters arising from this article or, indeed, want to talk to us about any of WAY's products, then you are most welcome to call Tony Lyons, IFA Support Manager, on head office telephone number: 01202 890895. Or, if you prefer, you can use the website: Contact Form to get in touch.
Associated links:
Download a copy (PDF) of the: full EEA Board statement
Website: EEA Fund Management Limited
Website: The Financial Services Authority (FSA)
EEA Fund Management Limited: F.S.A. Submission (Jan 2012)
EEA Fund Management Limited: Fund Update (Feb 2012)
The WAY Group Newsletter for Financial Advisers | December 2011
Please Note:
This document has been prepared for Financial Intermediary Clients and Professional Associates of WAY Investment Services Ltd and is not intended for and must not be distributed to Private Investors. This document does not constitute investment advice. Services referred to in this document may not be suitable for every investor and if in doubt independent financial advice should be sought. No representation or warranty is given (express or implied) as to the accuracy, completeness or correctness of the information nor the opinions, interpretations and conclusions contained in this document. No liability is accepted whatsoever for any loss howsoever arising from any information in this document subject to the rules of the Financial Services Authority or the Financial Services and Markets Act 2000. Past performance is not necessarily a guide to future returns and changes in rates of exchange between currencies may cause the value of investments to rise or fall. Share prices, values and income can go down as well as up and investors may get back less than their initial investment. WAY Investment Services Ltd is an Appointed Representative of WAY Fund Managers Ltd which is authorised and regulated by the Financial Services Authority.