Big rise in platform business brings boost for Axa Wealth
Sales grew by 12 per cent for Axa Wealth in the first quarter of 2011 to £950m, up from £852m in the same period last year.
Total assets under administration rose by 22 per cent from £15.3bn to £18.6bn, which includes its wrap Elevate, Architas multi-manager arm and onshore and offshore bonds.
Assets under administration on the Elevate platform leapt by 183 per cent from £883m to £2.5bn and pension and onshore bond assets increased by 9.3 per cent from £4.3bn to £4.7bn. Elevate total sales were up by 140 per cent from £156m to £374m. Platform business represents 40 per cent of all sales.
Axa Wealth chief executive Mike Kellard 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.”
Forty Two Wealth Management partner Alan Dick says: “I think that the IFA business model depends on wrap. It is a no-brainer that wraps are the future.
“It is going to be tough for traditional insurers to rebrand themselves or launch themselves as wrap providers. Axa has made some headway into that but it will be an uphill battle because you have a number of established players already.”