AXA Wealth platform sales on Elevate have risen 140%, bringing total platform assets under administration at the end of Q1 to £2.5bn, with platform business now representing 40% of all sales (18%: 2010).
This growth is reflected not only in AXA Wealth’s new business focus, but in the latest forecast from Platforum which suggests that by end of 2012 total assets under management on platforms through IFAs is anticipated to reach £320bn.
AXA Wealth grew total assets under administration to £18.6bn, with growth coming in particular from the Elevate platform to £2.5bn and pension and onshore bonds to £4.7bn.
Elevate, which was recognised for its superior level of features and benefits for the second consecutive year**, has grown assets dramatically since launch two years ago through developing strong strategic partnerships which will help ensure AXA Wealth secures longer term success in what is likely to be a platform and investment dominated market.
Total AXA Wealth sales grew to £950mn (£852mn: 2010) following strong results from not only its wrap platform, Elevate, but also Architas Multi-Manager and strong demand for offshore bonds via its AXA Wealth International offshore businesses, based in both the Isle of Man and Dublin. AXA Wealth International, which provide offshore bonds from both the Isle of Man and Dublin jurisdictions, provide diversity, with their recognised service and quality platform capability. Bancassurance is also benefiting from demand from banks for their specialist services.
Sales highlights:
– Elevate total sales up 140% to £374mn
– AXA Wealth International (including Isle of Man and Dublin) total sales for the full year up 8% to £254mn
– Bancassurance volumes up 23% to £91mn in 2011
– Mutual Fund premiums up 95% to £259mn
Mike Kellard, CEO, AXA Wealth, says: “AXA Wealth has had a strong start to 2011, with significant growth in on-platform sales. This is partly a reflection of the shift by IFAs towards wrap, but also I believe the strength of our platform offer, and the changes we have made over recent months to enhance the adviser support and experience.
“The recent changes include the leveraging of AXA Wealth’s existing 5 star service capability across the Elevate proposition, by bringing firstly wrap adviser support and then wrap back office administration into a single adviser support unit. We have also moved to a single dedicated distribution team. We are also merging the specialist adviser support teams to create a new Professional Edge adviser business service, with capability across both product and platform.”
AXA Wealth expects the trend towards platform to continue, as the combination of the shift away from insured funds to open market (mutual fund) investment portfolios, RDR, and advisers and their clients seeking more control over the management of their investments, with the support of specialist wealth partners like AXA Wealth, gain traction.
The Resolution deal in September 2010 repositions AXA Wealth as a new model wealth business, with a focus on offering specialist investment, retirement and tax planning services. It focuses predominantly its offer on mass affluent and high net worth clients and differentiates itself through market leading service and a superior platform based investment management proposition. It also has successful bancassurance relationships, and corporate investment services delivering bespoke investment solutions for corporate pension schemes.
Source : AXA Wealth Press Release
