Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

EEA hits out at investor group's death bond redemption warning

1 Comment
EEA hits out at investor group's death bond redemption warning

EEA Fund Management has hit out against a letter warning investors in the suspended Life Settlements fund that they must file their redemption requests soon or risk not getting their money back.

There is a six-month window for payments to be made but requests must be filed by 28 December.

The warning, issued by EEA Investors’ Group, said the firm will be able to reinvest all unclaimed assets into other instruments.

According to the key questions document updated by EEA in November, cash will not be put back into another scheme while there are relevant outstanding redemption requests.

David Trinkwon, who helped set up the action group, said holders of more than 870,000 continuing shares valued at more than $90 million (£67.5 million) are yet to request redemption and could miss the chance to get their money back.

‘EEA are within $10 million of being able to satisfy all existing requests,’ he said.

According to the action group, EEA is negotiating to sell off the remaining life insurance policies in the portfolio to Coventry Capital, releasing more than $250 million of cash for all remaining investors.

However, last month it was revealed that Coventry Capital had filed a suit against EEA in the US, alleging the firm had thwarted its efforts to buy the portfolio.

An EEA spokesperson said: ‘We remain concerned that ill-informed allegations are being circulated. They can cause unnecessary alarm and anxiety to some shareholders and risk, amongst other things, having an adverse effect on the sale prices of policies.

‘The fund and manager strongly dispute any suggestion that the fund is not being handled properly or in investors’ interests.’

The fund has been returning money to shareholders on a regular basis, with the latest distribution totalling £4.3 million.

It suspended redemptions in 2011 following a wave of withdrawal requests after the Financial Services Authority branded life settlement funds ‘toxic’.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Citywire Scotland: how wealth managers use new tech

Citywire Scotland: how wealth managers use new tech

We caught up with a few wealth managers at our annual event in Gleneagles to find out what technological innovations they are employing across their businesses.

1 Comment Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Read More
Wealth Manager on Twitter