AXA to wind up mortgage funds
AXA has confirmed that it plans to wind up two of its mortgage funds and return money to investors over a four to five year time frame.
Monday, March 30th 2009, 4:53PM
The two funds being wound up are the Mortgage Distribution and Mortgage Income funds. Both are BNZ products and were sold primarily through the BNZ network.
AXA took over the funds when it bought BNZ Investment Management and it retains control of the funds used by the bank.
There are around 6000 investors in the two funds and $212 million of investments. AXA chief executive Ralph Stewart says various options have been considered but on balance it had been decided the funds should be wound up.
Currently the funds have $31 million in cash reserves and the first repayment would be in April.
Stewart said the wind up would take four to five years and there was no guarantee all the funds would be repaid. However, he hoped it would be and that capital would be returned first followed by interest.
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