Axa Portfolio Services, the firm responsible for the Axa Elevate platform, saw pre-tax losses increase 29 per cent to £33.5m in 2011, compared to a £26m loss in 2010.
The firm spent £3.2m on the Axa Elevate platform in 2011, a decrease of 70 per cent on the £10.8m spent in 2010.
The firm’s accounts reveal the number of IFA firms signed up to Elevate increased 72 per cent from 819 in 2010 to 1,409 in 2011.
A statement in the accounts says: “The losses in 2010 and 2011 were expected and arose due to the recharge of the development and operating costs in relation to Elevate and reflect the fact that the business is in a rapid growth phase.”
The firm also attributes the losses to the development of its direct investor business, Axa Self Investor, which is due to launch via IFAs and to Axa employees during the first half of 2012.
Gross profits rose 17 per cent from £15.3m in 2010, to £17.8m in 2011, which Axa put down to the increase in assets placed on the platform.
Axa added £1.3bn in assets to its Elevate platform last year, taking total platform assets under administration to £3.5bn, a fall from the £1.5bn added in 2010.