AXA wealth inflows decline
The uncertainty generated by National Australia Bank’s bid for AXA Asia Pacific appears to have had a negative impact on AXA’s wealth management and platform inflows over the past nine months.
The company this week reported to the Australian Securities Exchange (ASX) that while total wealth management inflows were up 5 per cent to $6.1 billion for the nine-month period, AXA retail inflows were down 15 per cent to $4.9 billion.
The period covered by the report was affected by NAB’s bid to acquire AXA Asia Pacific — including its proposal to fulfil the requirements of the Australian Competition and Consumer Commission (ACCC) by divesting AXA’s North Platform.
The report to the ASX noted that platform gross inflows were down 8 per cent to $1.60 billion and net flows were down 39 per cent reflecting lower sales of North, partially offset by growth in inflows into Summit.
Commenting on the result, AXA Asia Pacific chief executive Andrew Penn said the company’s funds flow and new business results had reflected the different dynamics of the markets in which it was operating.
He said that in Australia and New Zealand inflows across the industry in wealth management had remained subdued.
With NAB having aborted its bid for AXA Asia Pacific following a final rebuff from the ACCC, the way has been left clear for AMP Limited to resume its bid for the company. However AMP has yet to move on the issue.
AUTHOR
Mike Taylor
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
