The WAY Life Settlements Fund

Important Notice:
EEA Life Settlements Fund suspended. 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 EEA Life Settlements Fund. Click here: for further information...

The Rationale for Life Settlements

The volatility of equity markets has led many potential investors to 'sit on their hands'. Whilst history may record long-term equity investment as highly rewarding, it does not suit everyone and/or everyone's circumstances to travel on what looks like a bumpy ride. This may particularly apply to investors whose foremost concern is to provide a shelter from the pernicious inheritance tax regime and save 40% on their already taxed assets. Having cultivated a nest egg to pass on to beneficiaries there is an understandable disquiet about exposing it to the short-term vagaries of the world's stock markets.

Rewards

In recognition of this concern, WAY launched its own class of a fund which has shown over the last four years that consistent, non-volatile but meaningful returns are achievable without correlation to equity markets. The fund, which has grown to over $800m in size is managed by EEA Fund Management (Guernsey) Limited and is focussed on the United States Life Settlements market. It has provided investors with 69 straight months of positive returns (to October 2011). (Source: EEA Fund Management (Guernsey) Limited, as at: 1st October 2011).

Policy Selection

A Life Settlement Fund is, in simple terms, a fund which holds life assurance policies sold to that fund by a life assured. The fund manager has two certainties - the purchase price and the maturity value. The unknown factor is the number of premiums that the fund will have to cover before the maturity value of the policy is paid out. Thus the critical management aspect is in the selection of policies to purchase and the monitoring of those plans when held by the fund. The fund currently holds in excess of 600 policies issued by over 90 life companies. (Source: EEA Fund Management (Guernsey) Limited, as at: 1st October 2011).

Certainty

Regulation in the US is such that policies which have run for two years cannot be contested on the grounds of non-disclosure, there is therefore certainty of pay out which does not exist in UK. Policyholders are prepared to sell for a variety of reasons - premiums have become too expensive (plans would otherwise lapse), capital is needed right now, the insured no longer has surviving dependents etc. Surrender values on US life plans are low and so a purchase offer from a Life Settlements Fund is a welcome boost to finances.

Link to Plan Documents: WAY Life Settlements Fund