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EEA death bond investors win $54.5m payout

EEA death bond investors win $54.5m payout

The EEA Life Settlements fund distributed approximately $54.5 million (£42.5 million) to trapped shareholders in April.

The distribution comes after the fund also reported four new maturities in the first quarter of 2017, paying a total net death benefit of £12.6 million.

On 3 April, the fund paid out $18.7 million to holders of continuing cells. In addition, the board of directors declared an additional redemption day for those holding run-off shares, in which they returned $35.8 million. This equates to about 19.7% of the 31 March NAV per share of run-off cells. 

Following the 10 April redemption day, the fund saw another redemption worth £2.3 million.

The last time run-off shareholders received a payout was back in October when the fund distributed $32.5 million (£25.4 million).

On its previous redemption days, the fund returned $6.5 million in January and a total of $48.5 million in October 2016.

In addition, the board has decided that the time period for the cash it holds to pay for premiums on current underlying investments should be reduced from two years to one year until further notice.

Last month, EEA Investors’ Group founder David Trinkwon called on the asset manager to liquidate the fund as he believes it would be more profitable to do so rather than hold the policies to maturity.

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