Axa has deferred redemptions from its retail life and pensions property funds for up to six months in a bid to deal with falling liquidity levels.
The firm follows Aegon Scottish Equitable, Scottish Widows and Close Investments, all of which suspended redemptions from their property funds in recent weeks.
Axa Investment managing director Ian Colquhoun says: “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.”
AXA has written to all customers invested in these funds and their advisers. Regular withdrawals, death claims and payment of pension benefits on retirement will not be affected by the deferral.