The EEA Life Settlements fund is preparing to reopen to investors after policy maturities of more than £48.3m were paid into the fund.
The sum from 46 policy maturities was paid into the fund between December 1, 2011, and June 1, 2012.
The payments were made after dealing in the fund was suspended following a wave of redemption requests sparked by the FSA labelling traded-life policy investments as “toxic”.
Peter Winders, marketing director at EEA, says: “These latest figures show that the underlying assets of the fund continue to perform as expected. One of the options likely to be offered to investors wanting to redeem when the fund reopens is to move their investments into a run-off vehicle.”
He adds: “The experience of the last few months underlines how the fund is continuing to benefit from maturities at significant rates and will bring reassurance to those who might be considering this option.”
Investors in the EEA Life Settlement fund are to be offered three options: remaining invested, opting for run-off shares that will see money returned as policies mature, or the selling off of holdings to institutional investors at a discount.
According to EEA, the fund’s net asset value has increased by 3.55 per cent in the five months since trading was suspended.
Winders says: “Life settlements is a historically non-correlated and low volatility asset class that is able to produce stable and consistent returns even through periods of stock market turmoil, such as we have experienced in the past six months.
“As such, the asset class is likely to remain attractive to sophisticated individual investors and institutions in the UK and globally.”