EEA Life Settlements Fund PCC Limited (the “Fund”)
In my letter of 6 January 2014, I was pleased to confirm that the
restructuring of the Fund had been approved and the suspension lifted. The
restructure has taken place and you will have received details of your
holdings as well as notice of redesignation to Run-Off Shares (where you
elected that option).
I would like to take this opportunity to thank you for your patience during
the suspension and for voting in such high numbers in favour of the
restructuring proposal. Shareholders holding a total of around 65% of all
shares took part in the vote, with over 95% of all votes cast being voted in
favour of the proposal. Shareholders holding around 42% of all shares either
elected or were deemed to have elected to receive Continuing Shares with the
other 58% electing to receive Run-Off Shares.
We have since early 2014 been liaising with the Channel Islands Securities
Exchange Authority Limited regarding a potential listing of the Fund's shares.
Discussions are ongoing and we will provide a further update in due course.
So, where do we go from here? The Fund is now in a cash building phase in
order to begin the process of either investing (indirectly) in additional
policies, for those holding Continuing Shares, or making distributions to
those holding Run-Off Shares. As explained in the circular to shareholders
and accompanying questions and answers document issued last September, and in
the Fund’s latest Offering Memorandum and Supplements available on www.eeafmg.gg,
the Board will make a six monthly assessment of the cash position of each
Run-Off Cell in the Fund to decide whether there is sufficient cash available
to make a distribution to holders of Run-Off Shares in that Cell. The main
consideration here is that there should be sufficient cash in reserve to
service ongoing premium payments and to meet other costs and expenses. We
will perform these assessments as at 30 June and 31 December each year and
will communicate our findings as soon as practicable after those dates. It is
not possible for us to speculate on the likelihood of a distribution before
those dates as the cashflows, by their very nature, are difficult to predict
We are also making progress in relation to arranging a matching share sale for
Run-Off Shares. The Manager has had non-binding discussions with a broker in
the Channel Islands and work is being done to elicit indications of interest
from buyers and determine the structure of the sales process. We will write
to holders of Run-Off Shares once this exercise is complete to establish
levels of interest.
I am also pleased to announce that we have decided to appoint two new
non-executive directors, David Jeffreys and Steve Burnett, to the Fund's Board
of directors. We are in the process of seeking the necessary regulatory
clearances and look forward to the additional independence, experience and
expertise David and Steve will bring to the Board.
David Jeffreys qualified as a Chartered Accountant with Deloitte Haskins &
Sells in 1985. He is an independent non-executive director for a number of
Guernsey based investment fund companies and managers. Between 2007 and 2009,
David established, and acted as the Managing Director of, EQT Funds Management
Limited, the Guernsey management office of the EQT group of private equity
funds. He was previously the Managing Director of Abacus Fund Managers
(Guernsey) Limited between 1993 and 2004, a third party administration service
provider primarily to corporate and fund clients. Prior to that he worked as
Steve Burnett sits on the board of a number of listed and private companies
and funds. He chairs the audit committee for an AIM listed property fund and
sits on the risk committee for JTC Group, a large corporate services company.
He was one of four founder members of JTC Group, where he held a number of
positions including CFO and Head of Funds. He sold his shares in 2012. He
qualified as an accountant in 1995 having trained with BDO.
At the time of writing, I am happy to report that the 2013 audit is well under
way and we expect to publish the annual report and accounts for the period
ended 31 December 2013 ahead of the 30 June 2014 deadline.
It is the Fund’s and the Manager’s intention to continue to provide regular
updates on the Fund and its portfolio of policies, including a quarterly
commentary on maturities and to highlight any items of particular interest
within the portfolio statistics.
If you have any questions please call your independent financial adviser or
your usual EEA representative.