According to the latest investor update from the EEA Investors Group, the $410m Guernsey-based fund agreed on 3 April to pay out $18.7m to investors with continuing shares, after reporting four new maturities (i.e. deaths) of life insurance policies in the first quarter of 2017.
On 26 April, EEA confirmed it would pay a further $35.6m to holders of run-off shares, which make up 60% of the fund.
The sum is the first significant payout since last October when investors received a £49m payout after EEA redeemed approximately $16m worth of continuing shares.
In addition, the fund’s 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, David Trinkwon, coordinator of the EEAIG, which has been working on behalf of investors to get the best deal for secondary shares, warned that investors may now have reached a ‘crossover’ point beyond which it would be more profitable for them to sell off their EEA shares rather than to wait until maturity.
