Changes to AXA's mortgage funds
After careful consideration, National Mutual Funds Management Ltd (NMFM or AXA), as responsible entity for AXA's mortgage funds, has decided to wind up the funds commencing 3 October 2011.
Since we changed the withdrawal arrangements for AXA’s mortgage funds in December 2008, we have made quarterly Withdrawal Offers available to investors in an effort to meet their liquidity needs.
Throughout this time, we have been working to find a solution that meets the ongoing liquidity requirements of investors and complements the nature of the funds’ underlying assets. However, taking into account the above issues as well as shifts in market demand and the most equitable methods to return capital, it has been decided it is in the best interests of investors to wind up these funds.
More information on the wind up process can be found in 'Wind up of AXA's mortgage funds - unit holder letters', attached below.
First capital repayment
We previously communicated our expectation to make the first capital repayment to investors this December and can now confirm payments will be made between 12 and 14 December 2011.
Payment details can be found in the 'First capital repayment' document, attached below.
Capital repayments will be made quarterly and will be paid into investors pre-nominated Australian bank account, or otherwise sent by cheque to the address we have on record.
New investment manager arrangements
From 28 November 2011, AMP Capital will replace AllianceBernstein as the investment manager for the fixed income and cash assets held in AXA’s mortgage funds. For more information, view the document 'New investment manager arrangements for AXA's mortgage funds' attached below.
Access to funds in circumstances of hardship
We previously advised that when the funds went into wind up on 3 October 2011, we would be unable to process hardship claims. We have now received relief from the Australian Securities and Investments Commission (ASIC) to once again start accepting withdrawal requests from investors on the basis of financial hardship. For more information, view the document 'Hardship criteria for mortgage funds', attached below.
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As at 30th March 2011, AXA Asia Pacific Holdings Limited and all of its Australian and New Zealand subsidiaries ceased to be members of the Global AXA Group and became members of the AMP Group.
