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Early move to RDR sees AXA Wealth sales soar 79%

by Alex Steger on May 07, 2013 at 07:57

Early move to RDR sees AXA Wealth sales soar 79%

AXA Wealth has seen sales increase by 79% to £1.6 billion in the first three months of 2013, compared to the same time in 2012, which the company attributed to its early move towards the retail distribution review (RDR) and adoption of adviser charging.

Assets on AXA’s wrap platform Elevate grew by 50% over the last year to hit £6 billion, boosted by increased IFA sales of £397 million in the first quarter of 2013.

For the three months ended 31 March 2013 Elevate’s assets were £6 billion, compared to £4 billion the same time last year.

IFA sales for the first three months of the year were up 28% from the equivalent period in 2012 to £397 million.

AXA Wealth’s Architas business saw assets increase 13% from £10.7 billion to £12.1 billion.

It said: 'These results indicate a strong first quarter for the business, which developed a tailored approach to market in the lead up to the RDR with a commercial focus developed for each of its core business areas, each of which were early to adopt adviser charging.'

Mike Kellard (pictured), AXA Wealth chief executive, said: ‘The AXA Wealth business was well prepared for the RDR which has given us a strong basis to continue to evolve and develop the business for the years ahead. This first quarter’s results show we are very well placed to continue achieving this.’

‘This quarter’s results are the first barometer of whether AXA Wealth’s RDR strategy has been successful, and overall it is a very pleasing picture.

‘Looking forward, I am feeling more optimistic than I was this time last year for the industry and for AXA Wealth.’

8 comments so far. Why not have your say?

Philip Melville

May 07, 2013 at 08:29

Isn't it an odd world when Providers are being applauded for increasing their SALES whilst ADVISERS are being legislated to decrease their SALES.

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May 07, 2013 at 09:24

Think you will find that IFA's are behind much of this increase in sales for providers. Those IFA's who are struggling under the new regime simply havent prepared for the changes that have taken place.

I think most IFA's are still maintaining or improving levels of sales, but the income earned per sale may have reduced to more realistic levels.

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May 07, 2013 at 09:28

I don't want to put a negative message on here, because AXA do seem to be doing well and have developed propositions that are clearly doing well, but hidden away in their press release is the fact that although sales are up, they aren't really making any money!

Should I trust providers who are clearly good at winning business but then can't make any money on the business they win?

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thomas west

May 07, 2013 at 11:11

Good point Tarquin; a company is not really being successful if they are acquiring a larger percentage of business in a shrinking market.

RDR will have it's winners and losers and it will be interesting to see what effect this has ten-years on. If the last ten-years is anything to go by it will be interesting, please note:

Stakeholder pensions (failure)

Child Trust Funds (not followed through)

SERPS (in - out - shake it all about)

Leaman and the Banks (should all now be playing at HM pleasure).

LIBOR (thanks mate, owe you one big boy!)

Mortgages (now you can have one, now you can't)

MAS ('yes I really am worth that enormous salary')

FSA (yes that Treating Customers Fairly was really worth the effort, and just look at the state of those deckchairs!)

NEST (of vipers)

RDR (well you have to find something to do, I mean, why else would you book Gleneagles for the conference?)

FCA (new broom sweeps clean, but not if you use the old brush)

Roll on retirement

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alan mcintosh

May 07, 2013 at 15:18

A lot of this increase is rebasing within the group therefore not new business at all. Given there historic service levels, it is astoudning they are still being supported given the strong competition in the wrap market.

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May 07, 2013 at 23:35

What a bitter industry we are in when we look to criticise an organisation for doing well. There will be winners and losers in the wrap market however it would be fair to say there has yet to be a wrap provider that makes an immediate profit.

As for rebasing I thought AXA sold their back book to Friends Life so maybe it is new business.

There are some excellent platform providers who are keen to help advisers rather than just provide a piece of kit and i for one will support these organisation that support me.

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alan mcintosh

May 08, 2013 at 16:39

Some people obviously have not had a bad expierence with some of these providers in past 30 years? Suddenly to become over night stars, then one wonders at the long term prospects

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Stan via mobile

May 11, 2013 at 09:50

Don't trust product providers! Get your clients onto an independent WRAP. Product providers will get all your clients on board and then slowly start to turn off your fees. Look at Standard Life and Aegon. As a global company AXA don't understand "intermediaries" If you go to Europe you'll see a big sign on a shop saying AXA and in small letters at the bottom John Smiths brokers. How many of you using Elevate, print off client reports with your logo on? None because they dont want it there. The AXA logo is clear to see. Have another look at your printed client report. Feel like an AXA employee?

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