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Agenda Item No

 

The Vale of Glamorgan Council

 

Welsh Church Act Estate Committee: 07 April 2014

 

Report of the Managing Director

 

Estate's Investments - EEA Life Settlements Fund PCC Ltd

 

Purpose of the Report

1.         To apprise committee of the recommendations received from its investment advisor, Bluefin, regarding the estate's investment in EEA Life Settlements Fund PCC Ltd.

Recommendation

That committee considers the recommendations of Bluefin.

Reason for the Recommendation

To consider an offer of redress and purchase in relation to the estate's investment in EEA Life Settlements Fund PCC Ltd.

Background

2.         This matter was last reported to your committee at it's meeting on 30 January 2012 when committee was advised of the suspension of dealings in EEA Life Settlements Fund PCC Ltd.

3.         The investment was subsequently restructured into "run off shares" which it was anticipated would be sold off over a period of 5 - 7 years.

4.         Bluefin has now written to advise of it's involvement in a Financial Conduct Authority review on recommendations made to clients to invest in such investments.

5.         The review has concluded that the estate's investment in such funds was unsuitable.

Relevant Issues and Options

6.         In view of the above, Bluefin is offering compensation in the sum of £2,278, and offering to buy the shares for £30,882.

7.         This compares with that originally invested September 2009 of £39,990 and dividends received to date of £9,108.

8.         The "current value" of the investment is quoted as £32,244, albeit the investment is  only redeemable as indicated in paragraph 3 above.

9.         Bluefin, whilst recommending acceptance of its offer, also advises that the trust might, by leaving some of its money invested in these funds, obtain a higher return than is currently being offered.

10.      Bluefin's offer letter dated 21 March 2014 is reproduced at Appendix "A" to this report.

Resource Implications (Financial and Employment)

11.      Any capital loss will be reflected within the overall capital value of the funds investments. Funds received will be reinvested to sustain the trust's ability to maintain its level of grant giving.

Sustainability and Climate Change Implications

12.      There are no sustainability and climate change implications arising out of this report.

Legal Implications (to Include Human Rights Implications)

13.      There are no direct legal implications arising from this report.

Crime and Disorder Implications

14.      There are no direct crime and disorder implications arising from this report.

Equal Opportunities Implications (to include Welsh Language issues)

15.      There are no direct equal opportunities implications arising from this report.

Corporate/Service Objectives

16.      The sole concern of the committee is to act in the best interest of the estate.

Policy Framework and Budget

17.      Not applicable

Consultation (including Ward Member Consultation)

18.      Not applicable

Relevant Scrutiny Committee

19.      None

Background Papers

All as reproduced at Appendix "A" to this report.

Contact Officer

Mr AD Williams

Accountant

Resources Directorate

Tel: 01446 709250

Officers Consulted

None

 

Responsible Officer:

Managing Director

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