There were a total of 8.6m EEA shares issued between 2006 and 2011, of which 4.9m were still in issue when the Fund was suspended on 30th November 2011. In October 2013, holders of 2.9m (58.07%) of the shares converted them to the new Run-off Classes during the Fund Restructuring, which became effective on 1st January 2014.
Redemptions – Run-off shares are automatically redeemed by EEA as and when there is enough “Available Cash” to pay the redemptions, nominally twice a year. Everyone gets a similar proportion of shares (by value) redeemed on each Redemption Day but the actual amounts can vary slightly between different Run-off Cells.
At 29th December 2017 the 15 Run-off Cells were valued at $146m, including $37.6m (26%) of gross cash. Holding back an amount as a “premium reserve and accrued expenses” leaves $12.6m(11%) as “Available Cash” for potential redemption payments to Run-off shareholders. EEA have announced that they will make Redemption payments as of 12th February 2018 – details to follow shortly.
Please contact us if you have questions related to your Run-off shareholding.
The table below summarises the status of the Run-off Shares and redemptions over the years.