AMP Capital is moving to re-assure people its funds remain a good investment, despite it suspending activity in one of its multimillion-dollar property funds.
New Zealand's largest fund manager has suspended activity in AMP Capital NZ Property Fund after a rush of investors wanted to withdraw their money.
AMP Capital says $419 million is wrapped up in the freeze of the unlisted fund. No other AMP investment funds are affected.
The company says it can suspend redemptions, or investors pulling money out, for up to one year and it will lift the suspension as soon as market conditions improve.
AMP Capital's managing director Murray Gribben says the trust's actions are a prudent response to the market conditions. However, he insists the fund is safe and is good investment.
AMP Capital New Zealand is a subsidiary of the Australian financial services firm AMP.
Fund withdrawals
Property and mortgage funds are haemorraging millions of dollars as investors withdraw their money.
The latest market report by Fund Source shows a total of $391 million flowed out of managed retail funds in the June quarter - $320 million of this was from the property and mortgage sectors.
The total outflow was double the amount in the same period last year.
At the same time, some property finance companies are hitting trouble - an estimated $3 billion of investors funds is frozen to date.
