EEA investors approve restructure

The suspended EEA Life Settlements fund is on the verge of reopening after investors approved the restructure of the product.

The fund - which invests in second-hand life insurance contracts sourced from the US - has been suspended since November 2011 when previous regulator the FSA announced a proposed ban on retail sales of such funds, dubbing them “toxic”.

But EEA now hopes to reopen the fund next month after investors agreed with the group’s proposal to offer investors - who have been locked in the fund for nearly two years - three options:

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• selling their stake to institutional investors;

• continuing their investment; or

• opting for a ‘run-off’ share class which will gradually repay their investment through as the contracts mature.

Simon Shaw, chairman of EEA Fund Management, said: “The board was strongly of the view that this proposal offered the best way forward for shareholders and they have overwhelmingly agreed.

“We know this period has been extremely frustrating for them and we are grateful for their understanding and support. We continue to have confidence in the ability of the life settlements asset class to deliver attractive returns. A large number of shareholders share that view and have elected to remain long-term investors in the asset class by opting for the continuation share class.”