Westpac portfolio customers told of AXA fund freeze

Westpac portfolio customers told of AXA fund freeze

Westpac has written a letter to customers of its Capital Stable Portfolio notifying them that their investments in AXA's Mortgage Backed Bonds have been suspended, as announced last month. See our article here from August 4 announcing the AXA suspensions. Here is a copy below of the letter sent to customers.

Dear xxx Important information about the Westpac Capital Stable Portfolio I'd like to update you on a recent development with regard to your investment in AXA's Mortgage Backed Bonds (AXA Bonds) which are held on your behalf through the Westpac Capital Stable Portfolio (the Portfolio) of the Westpac Wrap Service. The AXA Bonds are promoted by AXA New Zealand (AXA), and issued by Mortgage Backed Bonds Limited, a subsidiary of AXA. We've been notified by AXA that as a precautionary measure to preserve overall fund liquidity, redemptions of the AXA Bonds have been suspended effective from 4 August 2008. AXA have advised that the suspension is intended to remain in place for at least 90 days. AXA has informed us that the suspension is not a reflection of the quality of the fund and that the decision to suspend has been made in the best interests of investors. We are in regular contact with the Managers of the other investments comprised in the Portfolio and have been advised by them that the quality of the assets in both the Perpetual Trust Mortgage Fund and Westpac Mortgage Investment Fund remains strong. As part of our investment review process, we'll continue to monitor this situation and we will notify you if there is any change. If you would like to discuss this with us in more detail, please don't hesitate to contact your Westpac Wealth Adviser on . Yours sincerely Patrick Middleton Head of Wealth

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