The chairman of the suspended EEA Life Settlements fund has written to investors after its auditors said the fund is worth $100m less than the value stated in the company's annual update.
The fund was suspended on 30 November 2011 due to "unprecedented" levels of redemption requests after the regulator announced that it would seek to ban the sale and marketing of traded life policy investments to retail investors - which it did this year. Investors have since been unable to sell their holdings, and have effectively been left trapped in the vehicle. Earlier this week the news got worse for investors, with auditors Ernst & Young claiming the portfolio has been overvalued by around $100m, but in a letter to shareholders, chairman of the EEA fund Mark Colton hit back at it...
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