EEAIG has been working on behalf of investors to get the best deal for secondary shares.
Last October, investors in the $410m (£331m, €387m) Guernsey-based fund finally recieved a £49m payout after EEA redeemed approximately $16m worth of shares for investors holding continuing shares as of 20 October.
However, in the latest investor update Trinkwon 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.
“This is a complex evaluation, but my preliminary findings are if all policies were sold now for (Fair Value + 15%) then the crossover has already occurred.
“A sale would increase the total redemption cash for investors by up to $97m (24%) between 2017 and 2022, depending on the timing and assumptions used,” he said in his latest investor update on Monday.
Trinkwon added that any decision “on the timing of a sale should take into account the various valuation, longevity, market and currency risks of holding on and the dis-proportionate impact of future expenses.”
