AXA Investment Managers Deutschland has decided to extend a redemption freeze on its Immoselect open-ended property investment fund for a further nine months. The decision comes after the expiration of a first three-month closing period for the fund.
AXA Investment Managers Deutschland has decided to extend a redemption freeze on its Immoselect open-ended property investment fund for a further nine months. The decision comes after the expiration of a first three-month closing period for the fund.
'This means that the repayment orders that have been made on 17 February will not be granted,' the company said in a statement. Achim Gräfen, head of AXA Investment Managers Deutschland and fund manager of AXA Immoselect said that the closing was a result of 'inadequate liquidity to service the sales requests'.
A number of German fund managers have announced the closing of their open-ended funds in recent weeks on the back of unusually heavy redemptions from investors. Aberdeen Immobilien Kapitalanlagegesellschaft has requested a nine-month redemption freeze on its Degi Global Business vehicle due to 'continuing difficult market conditions'.
'During this period the fund management will continue to work on the liquidity situation,' the company said. Hartmut Leser, chairman of the Aberdeen Asset Management fund company, told news agency Reuters that the company could liquidate the fund if the situation does not improve by the end of the first quarter.
Pramerica Real Estate Investors, the property arm of Prudential Financial, also halted redemptions from its TMW Immobilien Weltfonds vehicle. The closing, which will be for an initial period of three months, comes shortly after Pramerica decided to re-open the fund at end 2009.
