2008
(31/01/2008) AXA introduces deferral on its Retail Life and Pensions Property funds
As a result of the recent slowdown in the commercial property market and in the interests of all customers, AXA has today decided to implement a temporary deferral to fund switches out, surrenders from and transfers out of its AXA Life Property and AXA Pension Property funds for up to six months.
AXA Life and Pension Property funds deferral period applies for a six month period from the date the request was received by AXA.
AXA has written to all its customers who are invested in these funds and their advisers in order to keep them fully informed.
Certain transactions will not be affected by the deferral. These include regular withdrawals, death claims and payment of pension benefits on retirement.
Ian Colquhoun, Managing Director, Investment Office, said: "The commercial property slowdown has resulted in a fall in the liquidity of property funds across the marketplace. The sale of a property can take a long time to complete - on average five months or more - making commercial property funds less liquid than other assets.
"Given the current liquidity of the funds the deferral is a sensible and prudent decision, taken as a result of careful assessment as to what is best for the funds investors as a whole. Treating all our customers fairly is our main concern for both for those customers who wish to remain invested in the AXA Property Funds for the longer term as well as those who wish to take money out. This measure, which is normal in such circumstances, will permit the managers of the funds to sell selected properties in a considered manner and at a reasonable price.
"The recent uncertainty in the commercial property market follows a strong performance in this sector over the past couple of years. Along with most of the industry, we at AXA maintain the view that property remains a solid long-term investment."
- Ends -
Notes to editors
The transactions that will be affected by the deferral are:
AXA Life Property Fund
- Switches out of the Fund
- Surrenders including partial and segment surrenders from the Fund
AXA Pension Property Fund
- Switches out of the Fund
- Transfers out of the Fund
All transaction requests received by midnight on 30 January 2008 will be honoured.
Certain transactions will not be affected by the deferral. The transactions below are exempt and will be carried out as normal:
AXA Life Property Fund
- Death and critical illness claims
- Maturities
- Existing regular withdrawals
- Requests for new regular withdrawals
- Increases to existing regular withdrawals
AXA Pension Property Fund
- Death claims
- Payment of pension benefits on retirement
- Automatic switches that take place as part of your policy (Lifestyle switches)
- Court directed splitting of pension policies on divorce
- Existing income withdrawals
- Requests for new income withdrawals
- Increases to existing income withdrawals
More information
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About AXA
AXA UK is a part of the AXA Group. AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse geographically, with major operations in Western Europe, North America and the Asia/Pacific area. For full year 2006, IFRS revenues amounted to €79 billion and IFRS underlying earnings amounted to €4,010 million.
The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock Exchange. The AXA American Depository Share is also listed on the NYSE under the ticker symbol AXA.
Our previous company performance is not a guide to how we may perform in the future.
Any opinions expressed in this media communication are made as at the date of this publication but are subject to change without notice.