Axa axes withdrawels

Life and pension firm Axa has barred redemptions from its Life Property and Pension Property funds for up to six months in a bid stop panic selling.

AXA has written to all its customers who are invested in these funds and their advisers. The decision will impact upon some 100,000 private investors.

Certain transactions will not be affected by the deferral, including regular withdrawals, death claims and payment of pension benefits on retirement.

Axa is the latest in a growing list of firms to take such action to restrict access to their assets to prevent a Northern Rock-style run on their resources. There is now around £8bn of investor cash locked up in property funds.

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