Life settlements fund generates £40m despite FSA ‘toxic' label

Life settlements fund EEA has generated nearly £40m in revenues in the last two months, despite its suspension following "unprecedented" redemption requests.

The fund's suspension followed an announcement by the FSA that it planned to ban the sale of traded life policy investments (TPLIs), which purchase mainly US life insurance policies. However, between the £600m fund's closure to new business on 1 December and the beginning of this month, 36 policies have matured totalling $62m (£39m), at what the company called above-normal levels. Marketing director Peter Winders said the figures are validation that the fund continued to generate positive returns, despite FSA pressure. "Though the fund is suspended, it continues to generate returns...