AXA property fund ‘on hold’
Research house Adviser Edge has placed the AXA Australia Property Fund’s four-star rating ‘on hold’ following the recent shift in the fund’s asset allocation towards highly illiquid direct property.
Adviser Edge head of property research Louis Christopher said: “We are taking this precautionary view in response to the change in asset allocation of the fund. This action does not necessarily mean the fund will be downgraded. However, it is viewed as a necessary step to ensure investors are kept informed.”
Since the fund received its four-star rating, the asset allocation of direct property has grown from approximately 50 per cent in September 2007 to the current 85 per cent in funds under management. The remaining allocation was invested in listed real estate investment trusts and cash, which fell from 50 per cent to 15 per cent.
According to Adviser Edge, the asset allocation change was made due to the number of direct property acquisitions made earlier this year and the fall in the value of domestically listed real estate investment trusts.
The fund’s rating has been placed ‘on hold’ pending a full review, which will occur in September 2008, with a revised rating due in November 2008.
AXA has stated that it is currently meeting redemption requests as they arise and has communicated to Adviser Edge that it wishes to participate in the review of the fund.
AUTHOR
George Liondis
Recommended for you
There is one specific risk that is a significantly higher concern for financial services directors compared to companies overall and is impacting their risk appetite, according to the AICD.
Global fund managers are shunning bonds, with the asset class seeing the largest drop in allocations in more than 20 years.
Australian Ethical has seen its funds under management reach $10 billion, driven by organic customer growth and superannuation contributions.
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.
