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Australian Property Fund
In August 2008 we announced that withdrawal timeframes for AXA’s Wholesale Australian Property Fund (WAPF) would be extended from daily to a period
of six months and that we were evaluating a proposal to list WAPF on the Australian Securities Exchange (ASX). As the Australian Property Fund (APF) invests predominantly in WAPF, withdrawal timeframes for APF were also extended from daily to a period of six months. In October we advised that following unprecedented volatility in the market that the proposed listing of WAPF would not proceed.
Throughout 2009, we have been assessing a range of other potential options such as the sale of some of the properties within WAPF. These options have been assessed taking into account their likely impact on unit holders. The evaluation process has also included obtaining up-to-date independent valuations of the properties in WAPF.
Importantly, income distributions from APF and WAPF have continued during this process and will continue to be paid quarterly.
Management of WAPF
AXA does not believe that WAPF will be in a position to realise its investments at the optimal value for WAPF clients in the short term (within the next 12 months). As a consequence WAPF introduced new withdrawal arrangements. Going forward AXA will notify clients of any withdrawal offers. Withdrawal requests already received by AXA cannot be processed and WAPF remains closed to new applications.
We do not have a timeframe for a Withdrawal Offer at this stage. As previously advised, the availability of a Withdrawal Offer is subject to factors including available cash.
Access to funds in circumstances of hardship
We have received direction from the industry regulator, the Australian Securities and Investments Commission (ASIC) to allow us to process withdrawal requests from our property funds on the grounds of hardship.
Wholesale Australian Property Fund property revaluations as at 11 November 2009
There has been a reduction in the value of properties held in WAPF by 1.58 per cent (weighted average) compared to May 2009 valuations. The impact that the November 2009 property revaluation had on the unit price was a reduction of 1.43 percent. The weighted average capitalisation rate for the portfolio has increased from 8.5 per cent to 8.8 per cent, reflecting the continued softening of market yields.
As AXA’s Australian Property Fund (APF) invests predominantly in WAPF, the circumstances surrounding WAPF affect APF.
 | Unit Price | 11/03/10 | Entry Price | 0.8395 | Exit Price | 0.8279 |  |
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This product summary is only provided for information purposes. It does not contain investment recommendation nor provides investment advice. Professional investment advice can help you determine your tolerance to risk as well as your need to attain a particular return on your investment. We strongly encourage you to obtain detailed professional advice and to read the relevant offer document in full before making an investment decision. Units in the fund will only be issued upon receipt of an application form accompanying a current disclosure document. The information is provided for persons in Australia only and is not provided for the use of any person who is in any other country.
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