Axa Asia Pacific will wind up a number of its property and mortgage funds listed on its North, Summit and Generations platforms, while it has closed several equity funds to contributions.
Axa terminated a number of property funds, including the Axa Diversified Property Securities Fund and Axa Global Property Securities Fund.
According to data from Morningstar, the Axa Diversified Property Securities Fund had $157 million in funds under management (FUM), while the Global Property Securities Fund had about $260 million in its hedged and unhedged versions.
The terminations were decided on because of the significant decline in the size of each fund, Axa said.
The fund manager said the funds were no longer economically viable and therefore it was in the best interests of investors to terminate the funds.
The manager will start the process of selling assets and distributing proceeds on 12 October.
Axa also decided to wind up its mortgage funds starting from 3 October.
The funds affected are the Axa Australian Monthly Income Fund, which had $697.5 million in FUM, and the Axa Australian Income Fund, which had $188 million in FUM.
The products, which had limited redemption offers, will move to a return-of-capital approach, paid quarterly, starting from December 2011.
Monthly distributions will continue to be paid.
Axa also decided to close a number of its funds to contributions as of 5 September because of a decline in market demand for the funds.
These funds include the Axa Australian Equity - Industrial Fund, which had $51 million in FUM, Axa Australian Equity Growth Fund, which had $43.2 million in FUM, Axa Emerging Markets Fund, which had just $5 million in FUM, and Axa Global Diversified Yield Fund, which had $170 million in FUM.
Withdrawals can still be made from the funds and distributions will continue to be paid.
