Isle of Man-based Axa Wealth International reported a 37% increase in new sales between Q2 and Q3 of this year, against an 83% increase between the first and second quarters.
The company now has offshore funds under management totalling £8.9bn (€12.3bn, $13.7bn), a slight dip on the previous quarter’s £9.1bn.
This comes just two months after rumours emerged that the Axa Group was planning to sell its UK operations. The company has denied these claims.
Not conducive
“This year has proved to be quite unsettled in the advisory market,” said Mike Foy, managing director of Axa Wealth International.
"The Financial Advice Market Review has created a level of uncertainty that has not been conducive to UK offshore market growth"
“We’ve seen some significant changes from providers in the offshore space, […] coupled with stock market volatility, pension reforms, and the UK General Election.”
He said the recent announcement of the Financial Advice Market Review has also created a “level of uncertainty” that has “not been conducive” to growth in the UK offshore market.
“That said, performance in the international space has been stronger than we had expected,” he added.
Optimistic
Foy said he is optimistic that Axa Wealth International will see greater stability and positivity returning to the offshore market in the rest of the year and into 2016.
“The new flexibility around pensions and changes to lifetime allowances for example, provide a great opportunity for the international market,” he said. “We see international products as providing the fourth strand to investment strategies.
“As clients begin to exhaust their conventional tax allowances through ISAs, general investment accounts and pensions, their advisers will look to international products to meet the needs of their clients.”
New business
New business for Axa’s overall business jumped by 46% between the third quarter of last year and 2015, totalling £578m.
Over the same period, its pensions and investment funds under management increased by 14% to £30.4bn from £26.6bn.
AXA Wealth’s wrap platform reported a 13% rise in FuM to £10bn in Q3 in 2015 from £8.8bn. Its specialist SIPP and investment platform grew FuM by 16% to £19.9bn.
Mike Kellard, chief executive of Axa Wealth, said the industry has undergone a “huge change”.
“With more government change ahead for the next year, we’ll be working with advisers to enhance our proposition in the areas that matter most to them – from adding model portfolio functionality, to improving our retirement offering and delivering consistently excellent customer service.”
