Axa Wealth has reported an 11 per cent drop in sales during 2012 to £3.3bn, down from £3.7bn in 2011, blaming “difficult trading conditions” in the wealth market.
The dip in overall sales is partly due to a fall in offshore bond sales, down 27 per cent from £962m to £699m. Axa says this was caused by a combination of economic uncertainty and advisers being “distracted” while preparing for the RDR.
Sales of the ‘Retirement Wealth Account’, Axa Wealth’s main pension product, also dropped 45 per cent from £668m in 2011 to £366m last year.
Total assets under management increased 14 per cent from £18.9bn to £21.6bn.
Assets on the company’s Elevate platform rose 51 per cent from £3.5bn to £5.3bn, with total sales increasing 17 per cent from £1.45bn to £1.7bn.
Assets under management at Architas, Axa Wealth’s specialist investment company, increased 20 per cent from £9.4bn to £11.3bn.
Axa Wealth chief executive Mike Kellard says: “The Axa Wealth business was structured with the RDR in mind, with both our wrap business through Elevate, and specialist individual products business, built on a tailored model to support different customer groups.
“While of course there is still uncertainty ahead, I think we will be in a strong position to support advisers in this new RDR world.”
Syndaxi Chartered Financial Planners managing director Robert Reid says: “All the platforms want to get assets but you need to be making money through sales as well, so an 11 per cent fall will be a concern to Axa.”