Important Notice to Investors - Temporary Suspension

Due to the uncertainty in the world financial markets, we must act prudently to protect the interest of all investors in the Fund. 

Therefore, Life Settlements Funds Limited, as responsible entity of the Life Settlements Wholesale Fund ARSN 110 346 695, wishes to advise that effective Friday 7 November 2008 all applications and redemptions have been suspended (including the payment of withdrawal requests which remain unpaid) until further notice. 

This temporary suspension has been made to protect the interests of all investors and to ensure that all investors are treated equally. 

Please see attached Important Notice to Investors dated 7 November 2008 and Questions and Answers.


AIG Update – we refer to our earlier posting dated 19th September 2008

We have been closely monitoring the current financial crisis and the likely impact on the insurance companies that have issued our policies. To date we are satisfied that the financial strength of the issuing companies, with their statutory pools of capital, have maintained their ‘secure’ ratings and that the different State regulators in the U.S. are monitoring the position closely. A detailed analysis of our portfolio holdings has revealed 54 policies issued by subsidiaries of AIG, with a total face value of US$242,262,186. Again they are separate entities to the holding company that has been given the injection of capital by the U.S. government.

A recent U.S. House of Representatives Hearing heard confirmation that the subsidiaries are solvent and have the funds to pay any policyholder claims.


Life Settlements Wholesale Fund Exposure to Policies Underwritten by American International Group - 19th September 2008

In response to the financial issues faced by American International Group (AIG) Life Settlements Funds Limited would like to make the following statement.

The Life Settlements Wholesale Fund does not own any life settlement policies which are in the name of AIG. The Fund does own 49 policies which are in the name of subsidiaries of AIG. This is out of a total of 568 policies that the Fund owns. The total face value of policies in the name of subsidiaries of AIG is $229,577,187 and this represents a small portion (9.78%) of the total face value of the fund ($2,348,256,119).

We believe that the policies underwritten by the subsidiaries of AIG are safeguarded by statutory pools of capital which are legally distinct and separate from AIG.

In a recent statement released by the National Association of Insurance Commissioners, the position of policy holders is made clear.

"As a holding company, AIG is a separate, federally regulated legal entity that is distinct and apart from its subsidiary insurers. The subsidiary insurers are governed by state laws designed to protect the interest of policyholders. State insurance regulators are committed to protecting the interest of policyholders and will work closely with AIG management and other regulators to fulfil this commitment".

For further detail on this and other releases by the National Association of Insurance Commissioners, please go to http://naic.org/

If you have any questions relating to the Fund's exposure to AIG or any other matter, please contact Stephen Knott, Director on +61 7 5557 4700.


Distribution - Quarter Ended 30 June 2008

We wish to advise that no Distribution was payable for the quarter ending 30 June 2008.


Public Holidays Observed in 2008

New Year's Day	1st January 2008
Australia Day	28th January 2008
Good Friday	21st March 2008
Easter Saturday	22nd March 2008
Easter Sunday	23rd March 2008
Easter Monday	24th March 2008
Anzac Day	25th April 2008
Labour Day	5th May 2008
Queen's Birthday	9th June 2008
Gold Coast Show Day	29th August 2008
Christmas Day	25th December 2008
Boxing Day	26th December 2008