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WAY joins forces with EEA to launch US life settlement fund

2nd December 2008 Print
WAY Fund Managers has announced it is teaming up with leading life settlement fund provider EEA Fund Management (Guernsey) Ltd (EEA) to launch its own class of the highly successful EEA Life Settlements Fund.

Launching on December 8th, investors will be able to access WAY’s innovative and unique range of inheritance tax (IHT) solutions while adopting an investment strategy uncorrelated to equity markets and promising smooth and steady returns.

Since it launched its Life Settlement Fund at the close of 2005, EEA has delivered consistent results, with 34 consecutive positive months’ returns to end October 2008.

The fund focuses on the US market and targets total returns of 9 – 10 % net of charges, with an investment benchmark to provide 8% annual net return to investors.

“This new initiative is a major breakthrough in terms of IHT planning as we can now offer the benefits of estate planning utilizing one of the most effective investment vehicles currently operating in the market place,” said Eddie O'Gorman, WAY Head of Sales.

“The steady near-certainty of returns on this fund is likely to appeal to more cautious investors alarmed by the fall out in equities since the credit crunch started to bite – and the comfort of being able to access a fund which has achieved 34 consecutive months of positive returns will go a long way to allay wider investment concerns,” he added.

So, why did O’ Gorman go for EEA, given increasing competition within this asset class?

“We deployed rigorous testing and due diligence, and are satisfied that this fund manager adopts the most conservative of approaches,” he said.

“For example, the average life expectancy within the fund portfolio is 39 months, and EEA determines a wide spread of medical and life Company risk.

“It does not use mortality tables to measure risk and fund valuation but monitors the health of each life assured individually – in other words, each policy considered for purchase is carefully scrutinised against a set of strict criteria, and two independent life expectancy reports are commissioned to determine a fair price.

“EEA also adds 12 months to the life expectancy of each individual as a further security, and does not buy any policy with a life expectancy of more than eight years,” said O’ Gorman.

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