Axa’s offshore assets under management, including offshore bonds, rose 2%, from £8.7bn in Q1 last year to £8.9bn.
Mike Foy, managing director, Axa Wealth International, said: “Fifteen months on from the introduction of the Retail Distribution Review, it is pleasing to note that Axa Wealth International continues to grow its portfolio bond assets year on year.
“The RDR has thrown-up many challenges within the UK financial services market for both advisers and product providers, as the sector continues to adapt to a non-commission world.”
He said Axa Wealth International has recently amended its customer illustrations to provide greater clarity on the full annual cost of fund and additional management expenses, following a decision to remove rebate paying funds.
“In the post-RDR environment many challenges remain, but the fundamental benefits of portfolio bonds for UK-resident asset rich clients who have utilised conventional UK tax breaks remain strong. However, product providers need to adapt to the post-RDR world and recognise the emergence of platforms as a major distribution channel, and that going forward product designs need to embrace greater flexibility in all aspects of the core proposition.”
Elsewhere, pension and onshore bond sales were up 2%, from £85m to £87m.
Axa Wealth’s overall assets under management grew by 8% from £24bn to £25.9bn over Q1 2013. Axa Wealth total retail sales were up 20% to £827m over the same period.
Wrap platform, Elevate, saw assets under management up 30% from £6.0 bn to £7.9bn.
Assets under management and advice also increased for Architas, Axa Wealth’s specialist investment business, up 7% from £12.1bn to £13bn.
