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Axa Wealth to close 115 funds

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Axa Wealth is to close 115 externally managed funds because they are no longer economic to administer.

The firm says investment has fallen to a level where the funds have become “uneconomic to maintain”.

However, no in-house funds will be closed in the review as they did not meet the “closure criteria”, a company spokesman says.

The funds will close between 23 November and 7 December.

The company says advisers who have clients invested in these funds through an Axa Wealth product will receive a letter with the details, as well as their closing funds and closure dates.

When the funds close, investments will be moved into default funds, or to alternative funds from the firm’s range if the investor chooses.

For example, the Axa Wealth Old Mutual Managed fund will be closed and investors will be transferred to the default Axa Wealth Elite Balanced Managed fund.

Rowley Turton Chartered Financial Planner Scott Gallacher says: “Almost invariably they are replacing externally managed funds with internally managed funds, so I am not entirely sure it has been a completely fair and honest assessment of what the best replacement funds are.

“People who have bought that product haven’t bought to invest it with Axa necessarily, they’ve bought it out of a wide range of external funds and now they are going to have 115 less funds to chose from.”

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