Axa Australia is to increase fees on capital protection for its North Protected Investment product from 5 October 2009.
Axa said the hike reflected the rising cost of fixed income assets and the volatility in the underlying equity markets. The move follows similar upsurges in charges in February 2009.
North products, which have raised over A$800m (US$692m) since inception in 2007, use protection fees paid by investors throughout the investment period to short futures on indices, as well as to buy currency forwards and interest rate swaps to hedge against any shortfall of capital at maturity.
These products appear in the Australian database.