Offer of AP/EA/SA Class Units
Supplementary Product Disclosure Statement (SPDS) - Dated 10th July 2009
LIFE SETTLEMENTS WHOLESALE FUND ARSN 110 346 695
As part of our process of continual improvement and compliance management, we have identified that the withdrawal fee whilst being disclosed in Sections 3 and 6 of the PDS should also have been explained in the fee table contained in Section 6.
We have subsequently amended the PDS and so as to rectify any potential misunderstanding, we are refunding the withdrawal fee charged to any investor retrospectively.
Please note that the withdrawal fees will apply in the future per the Supplementary Product Disclosure Statement dated 10th July 2009.
Important Notice to Investors 19th May 2009 -
Fund Re-opens for Redemptions
LIFE SETTLEMENTS WHOLESALE FUND ARSN 110 346 695
The Directors of Life Settlements Funds Limited wish to notify investors that it has lifted the temporary suspension on redemptions of units in the Life Settlements Wholesale Fund ARSN 110 346 695 (Fund) effective from Tuesday, 19 May 2009.
All previously accepted redemption requests which remain unpaid during the period of suspension will be taken to be received on 19 May 2009.
If you have any questions, then please speak to your financial adviser or contact us on 1300 881 373 (or international callers +61 7 5557 4700).
Important Notice to Investors 24th February 2009 - Fund Re-opens for Applications
LIFE SETTLEMENTS WHOLESALE FUND ARSN 110 346 695
Notice dated 24th February 2009
Important Notice to Investors 24th February 2009 - New Product Disclosure Statements
New Product Disclosure Statements (including a supplementary PDS) for all classes of units have been released today (Dated 23rd February 2009) and are available on this website under the Fund tab. All new applications can only be accepted on application forms attached to the new PDS. All obsolete copies of previous PDS's should be discarded.
Important Notice to Investors 10th February 2009 – Unit Price Update 31 January 2009 and Temporary Suspension
LIFE SETTLEMENTS WHOLESALE FUND ARSN 110 346 695
The unit price for all classes of units as at close of business 31 January 2009 have been struck and are published in the ‘Unit Price’ section of the website.
The Fund remains temporarily suspended for applications and redemptions, however this is reviewed on a weekly basis and investors will be notified of any change in the Fund’s status.
Notice to Investors - Hedging (Ordinary Units) -
3 February 2009
Important Notice to Investors - Unit Pricing and Suspension
LIFE SETTLEMENTS WHOLESALE FUND ARSN 110 346 695
The Directors of Life Settlements Funds Limited (LSFL) wish to update investors regarding the temporary suspension of applications and redemptions in the Life Settlements Wholesale Fund ARSN 110 346 695 (Fund).
Background
As previously advised, LSFL suspended the Fund to enable it to accurately set the unit price for applications and redemptions. This action was taken in the best interests of investors to ensure investors were not disadvantaged as a result of new applications or redemptions being processed.
Unprecedented recent events in world financial markets have resulted in a substantial decrease in the volume of life settlement transactions. As a result, it became difficult to accurately determine the market value of the Fund’s assets, i.e., “life settlements”, which is the transfer of the beneficial interest in a USA life insurance policy, by the insured to a third party (i.e. the Fund).
At the same time, updated US Life Industry Tables were being adopted by an increasing number of underwriters. These tables are used to determine the life expectancy of insureds, which has a direct impact on the value attributed to life settlements.
There were two issues to determine, a) what is the appropriate pricing of the fund for application and redemption transactions, taking account of all current factors and b) have sufficient market conditions returned to allow normalcy.
Unit pricing
To ensure the accuracy of the value of the Fund’s policies for unit pricing purposes, LSFL appointed an independent actuary with extensive life settlement experience to value the policies of the Fund. The actuary has completed a market valuation of the Fund’s policies, i.e., what a willing but not anxious buyer would pay for the Fund’s policies in the current market using the updated US Life Industry Tables. LSFL has now determined the December 2008 unit price for applications and redemptions based in part on this valuation. Updated unit prices for each class of unit are now available on unit pricing section of LSFL’s website.
Investors should note the current US/AUD exchange rates have had a positive impact on the unit price for Ordinary Units. The exchange rate has had no impact on the other classes of units as they are US dollar denominated.
Investors should be aware that the new unit price for each class of unit reflects the current valuation of the Fund’s assets today, under current conditions. The unit price attributed to each class of unit will continue to change over time as a result of broader financial market conditions, US/AUD exchange rates, life expectancy of insureds and the volume of life settlements transactions. The product disclosure statement for the Fund sets out a range of risk factors that may also impact on the unit price and the value of the Fund’s assets, such as improvements to medical treatments and changes to taxation.
Importantly the current valuation of the Fund’s assets and market conditions does not change or affect the face value benefit payable under each policy at maturity which is fixed at the time of issue of the policy by the insurance company. The Fund currently owns a diverse portfolio of 569 policies issued by 60 different US life insurance companies with a total sum of benefits payable of US$2.3 billion.
We also remind investors that an investment in the Fund is a long term investment with an investment time frame of at least six years.
Suspension of applications and redemptions
The Directors of LSFL are currently determining whether to lift the suspension of applications and redemptions based on market conditions. There is no fixed deadline to announce this.
All investors will be notified in writing as soon as the suspension of applications and redemptions is lifted.
