Axa Framlington could be set to lose £500m from its multi-manager range, with Bradford & Bingley understood to have given three months’ notice that it is to move its Isa and Pep back books out of the funds.
Money Marketing understands B&B has been unhappy with the management of the funds after a consistent period of underperformance. It outsourced the management of the funds to Axa IM in 2001.
B&B’s decision could see the group lose the cornerstone of its range, with money set to be taken out of both the £215m income and £405m growth offerings. A spokesman for B&B refused to confirm or deny the move, saying the firm does not comment on speculation but did say the firm would act in the best interest of customers.
Axa passed the management of its multi-manager range to Casper Rock in 2006 following a six-month review of its multi-manager arm when Axa’s fund of funds head James Hughes and Nick Poitier left at the beginning of that year. The funds have made third and fourth-quartile returns over three years.
B&B is understood to be passing the mandate to Legal & General in a new multi-manager proposition that will tie in to Cofunds.
Both Axa Framlington and L&G refused to comment.