Ipac picks up AXA super consulting
AXAhas brought the asset consulting of its superannuation products in-house, awarding the work previously handled byvan Eyk Research to Ipac.
The research group will be retained in a reviewing role, according to AXA chief investment officer Mick O’Brien, but Ipac will be the portfolio manager for all the multi-manager products, which includes AXA’s Super Directions and Summit Select.
“Ipac has taken responsibility for manager selection and implementation. We are now finalising the selection of managers and will announce who is retained by the end of the financial year,” O’Brien says.
Super Directions has about 10 managers on the approved list and Summit Select has a similar number, but O’Brien says there will be a final list of about 12 managers when the AXA and Ipac portfolios are combined.
The consolidation of the two business streams will bring $7 billion of funds under management for Ipac. AXA will be moving its $2 billion of funds during the next couple of months.
O’Brien says the move will also see AXA using Ipac’s investment structure, which uses mandates with fund managers rather that unit trusts.
“The new investment structure will mean reduced costs for investors when fund managers are changed in the future. There are cost savings for AXA from the move as the bigger mandates will give us more buying power,” O’Brien says.
He also says Ipac will bring better communication to advisers as part of the re-organisation.
AXA says the merger of the three products will make it the second-largest multi-manager in Australia.
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