AIG Life UK has said it has engaged Cairn Financial Products, a subsidiary of Cairn Capital Limited, to provide advisory services in relation to the portfolio of securities held by the AIG Life Enhanced Fund. 

The AIG Life Enhanced fund has been under the media spotlight, due to the formation of an action group that is pressing for the recovery of invested funds.  The fund, which was frozen in September, will officially close on 15 December, leaving investors to decide when they will cash-out their investment.

Writers on the www.aigvictims.com weblog say that several members of Cairn’s executive management committee were formerly employed by AIG subsidiaries

Cairn Financial Products has been appointed to provide a third party opinion of the value that investors will receive by opting to encash the remaining holding in the Enhanced fund in December.  The firm will conduct a review of the assets held in the Enhanced fund, including the assets’ ratings, their expected maturity dates and cashflow analyses. 

Investors in the fund will also be provided with a valuation of the assets, along with an indicative range of market values for each asset and the fund as a whole. Enhanced fund investors will receive a copy of the report by Cairn Financial Products on 17 November.

Doug Brown, chief executive officer of AIG Life UK said: “It was always our intention to provide a third party commentary on the fund. I am pleased to confirm the appointment of Cairn Capital to provide this. Feedback from advisers and policyholders has highlighted how important they view this information, which will provide them with additional data, on which to help base their decision.”

High net worth individuals, who include the UK television presenter Jeremy Clarkson, have invested some $8.8 billion in the AIG Life Enhanced fund.  Investors have been told that they could get back a minimum of half their money now, but would have to wait three years if they wanted to reclaim the remainder without loss.  Those cashing in their entire investment in December stand to lose as much as 25 per cent.