Press Releases

7th November 2008
Cash plus 5% - interest rate cut another boost to Life Settlements.

The Bank of England’s decision to reduce interest rates is another huge boost to advisers looking to recommend EEA's market-leading Life Settlements Fund.

The cut, which took the base rate to its lowest level for more than half a century, means the performance benchmark of the fund now stands at cash plus 5%.

The investment objective of the fund is to deliver 8% net of charges, with a target of 9-10%.

The fund recently chalked up its 33rd consecutive month of positive performance and has actually delivered a return of 10.13%* over the 12 months to September 30th.

And the Monetary Policy Committee’s move will serve only to heighten its appeal even further, according to EEA Group’s Marketing Director Peter Winders.

He said: “Before the cut our performance benchmark of 8% was cash plus 3.5%. Now it’s cash plus 5%. That’s a 40% increase in the relative return over cash.

“We’re already seeing unprecedented interest from advisers as they recognise this is as an absolute return fund that actually warrants the title and does what it says on the tin.

“I am sure IFAs will see that this cut makes our fund more attractive than ever for clients who want to make real money.”

Winders added: “We believe there’s a virtually insatiable appetite for absolute return funds that genuinely deliver – and all the evidence so far is proving us right.”

* Performance relates to Sterling C Class shares.