AXA has frozen three of its mortgage funds for 30 days - $225 million - 5000 investors now have their money tied up and its not allowed to go anywhere. AXA are asking for the Govt to guarantee them as well.
Will the other mortgage fund managers follow suit?
More in the Herald,
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1 hour ago
5 comments:
This action is purely a precaution to prevent `panic' withdrawals. As I understand it actual capital is quite safe with very small, if any, arrears by borrowers. These latest suspensions mainly affect BNZ customers as it is part of the portfolio AXA manages for the BNZ.
The AXA Mortgage Backed Fund, which is a retail fund, was suspended in August and is going to remain so for a further 90 days. The same reason applies as above and again arrears by borrowers, if any, are minute as I understand it.
I hope this helps your readers who may be in these funds.
There's over $12b in frozen mortgage funds in Australia due to the rush to move funds into Government guaranteed bank deposits.
A fabulous case of the "me toos" for welfare.
Welfare for everyone I tell you.
ck - you are right - it is like sex once you start you cannot stop. This would be funny if it wasn't so serious.
Ralph Stewart, CEO AXA, has just been on with Larry Williams and basically confirmed the thrust of my earlier post. What he couldn't say, that I can is that this move today is due to the shagging around by Cullen.
If you are going to Guarantee investers funds, which is what bank deposits are as well, then guarantee all that sit in the Term Deposit type category. As this is what Mortgage Funds are - they are a fixed amount invested for a fixed term and only vary from Term Deposits because the Fund Manager may vary the crediting (interest) rate from time to time as per the Trust Deed.
As Adolf says Cullen is a Fiscal Fool who has no idea what is going on at the moment..
So. I borrow $1 million on an 18month term with no repayments till maturity from a bank, using unmortgaged properties as 200% collateral at GV. Then I invest it in a finance company for 18 months. Net profit - $70,000+.
Thank you Mr. Cullen, you're nicer than Mr Hooker!
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