AXA closes German fund to new investors on subprime credit market woes – report

FRANKFURT (Thomson Financial) – AXA SA’s unit AXA Investment Managers on July 23 closed a 680 mln eur money market fund to new investors after its value slumped 13 pct in one day, Wirtschafts Woche reported, without saying where it got the information.Some 41 pct of the fund was invested in sub-prime loans, it said.AXA has decided to offer to buy back shares in the AXA IM US Libor Plus fund, which was offered to investors in Germany, at above market prices to stop a decline in liquidity as investors pulled their money out of the fund, it said.This is the second fund to be closed in Germany. Union Investment also closed a fund on July 23 due to the sub-prime loan sector crisis, the magazine said.maria.sheahan@thomson.commas/bsdCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.