The $15.1m, which is being distributed to all EEA shareholder and of which RL360° will receive a proportion, equates to approximately 10.3% of the net asset value per share as of 31 January 2018.
Isle of Man-headquartered RL360° announced that the money it receives will be paid to investors registered as holders of run-off shares as at 12 February 2018.
The distribution is by way of a compulsory redemption of a portion of each holder’s shares.
The company confirmed that the payments will be made as soon as practicable, subject to the receipt of any requested original paperwork.
Portfolio bond investors will have the money credited to the cash account on the bond.
Trapped in EEA
Investors have been trapped in the ill-fated EEA Fund since 2011 when it experienced a rush of redemptions after the then-UK regulator, the Financial Services Authority (FSA), warned retail investors not to invest in what it controversially described as “death bonds”.
The fund resumed trading in 2014 after the Guernsey Financial Services Commission approved a restructure that divided shares into continuing shares for those wishing to remain in the fund and run-off shares for those wanting out.
Around 40% of investors hold continuing shares.
Stark warning
In December 2017, the EEA Investors’ Group, warned that holders of more than 870,000 shares had not acted to stop their funds for potentially being automatically reinvested in similar products.
The deadline at that time was 28 December 2017 for a 3 April 2018 pay out.
The group was formed in October 2013 to improve the outcomes for investors trapped in the scheme.
Click through to the next page to see which run-off cells are being redeemed and the price per share.
