Axa takes action to protect property funds

Axa Investment Management has introduced deferrals for redemptions for its 125,000 investors in the Axa Life Property and Axa Pension Property funds.

From last week redemptions will be delayed by six months to protect the funds from the exodus of investor capital away from the sector.

The move follows similar deferrals in property funds managed by Scottish Widows Investment Partnership, Close Investments and Scottish Equitable.

Jamie Dannhauser, an economist at Lombard Street Research, says: “The underlying fundamentals were turning against property funds last year.”

He adds: “What has surprised [these funds] is the pace of the downswing.”