Suspended EEA Life Settlements fund sees NAV tumble 10%

Suspended traded life settlement fund EEA Life Settlements has reported a 10% drop in the net asset value (NAV) of the portfolio.

In a letter to investors, chairman of the fund Mark Colton said the maturity dates of the second-hand life policies held within the fund would be extended - meaning it will take longer for money to flow into the fund. As a result, he said there will be a "reduction to the net asset value of the fund of around 10% relative to the value immediately prior to the suspension of dealings". The fund was suspended on 30 November 2011 due to "unprecedented" levels of redemption requests after the regulator announced it would seek to ban the sale and marketing of traded life policy investments ...