Axa SA's asset management unit told investors last week that it would allow clients to sell shares in two bond funds that had fallen in value. Axa will buy the shares and hold onto them at its own risk to avoid selling holdings at prices that it deems to be below their ``intrinsic value.''
The company's Axa World U.S. Libor Plus Fund fell 12.6 percent between July 18 and July 19, while the Axa Investment Managers Fixed Income Investment Strategies U.S. Libor Plus Fund fell 13.5 percent over the same period, the Paris-based company said on its Web site.
Hypo Real Estate Holding AG and Depfa Bank Plc, lenders that reached a takeover agreement in July, haven't been hurt by the U.S. subprime turmoil, they said today.
Axa is going to regret that decision.
