Archive | AXA

AXA challenges deposit guarantee scheme

Published 29 October 2008

AXA NZ challenged the Government’s bank deposit guarantee scheme yesterday, freezing $225 million in 3 mortgage funds because it anticipates the Government scheme will result in an increase in redemptions.

 

AXA said it was suspending investment in and redemption from its Mortgage Distribution Fund, the Mortgage Investment Fund & the AXA Mortgage Fund for 30 days. But chief executive Ralph Stewart said AXA expected the income distribution due to be made by the Mortgage Distribution Fund at the end of November would proceed as scheduled.

 

Mr Stewart said: “While the details of the New Zealand scheme are yet to be finalised, at this stage it appears that most managed funds will be excluded. As a result of the exclusion of managed funds, we anticipate an increase in redemptions. We believe it is prudent to act early and to make the right decision in relation to investors in the funds.

 

“We believe the Reserve Bank is doing all it can to ensure the New Zealand deposit guarantee scheme is fair for all investors, but we are now concerned that managed funds are largely excluded from the scheme. We must act in the best interests of all our unitholders. By temporarily suspending these funds we are seeking to ensure that all unitholders are treated fairly.

 

“We are working with the funds’ trustees, the Public Trust & NZ Guardian Trust and the Reserve Bank to explore all options available to the funds.”

 

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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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AXA suspends wholesale bond redemptions

Published 4 August 2008

AXA NZ suspended trading today in the wholesale class of its Mortgage Backed Bonds fund and warned retail investors to behave themselves or trading in their fund would be suspended too.

 

AXA has $229 million under management in the 2 bond classes – $112 million invested by individuals in the class A bonds and $117 million by wholesale or institutional investors in the class C bonds. Trading was suspended for class C investors of more than $1 million.

 

Mortgage Backed Bonds Ltd, an AXA subsidiary, suspended wholesale redemptions for at least 90 days but will continue to pay income distributions to all investors, wholesale & retail.

 

AXA NZ chief executive Ralph Stewart said: “The Mortgage Backed Bonds fund has good levels of liquidity, currently 14%, it has no arrears and it has never had a default. There are no property developments in the portfolio and all the buildings over which mortgages are held are established & well tenanted. There are no related-party loans.

 

“The reality is that this is a solid investment which has delivered attractive, consistent returns. The fund is performing well. However, we cannot ignore the market sentiment and the impact this is having on investor confidence.”

 

Mr Stewart said retail investors could continue to invest or withdraw as usual. “However, it is possible that if withdrawals from smaller investors dramatically increase, we may be forced to suspend trading in the retail bonds as well.”

 

Want to comment? Email [email protected].

 

Attribution: Company release, story written by Bob Dey for The Bob Dey Property Report.

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