AXA continues wealth management push

AXAAsia Pacific Holdings (AXA APH), with profit of $287 million, has more than doubled its performance for the six months ending June in comparison to last year’s $134 million after-tax less non-recurring items figure, following today’s release of its half yearly report.

The $287 million figure, before non-recurring items, excludes one-off profits from the sale of AXA Health and the group’s 50 per cent stake in superannuation fund member-focused firm Members Equity. When these are included post tax profits more than double again to $655 million.

The figures were buoyed by the strong performance of the group’s wealth management operations, according to group chief executive officer, Les Owen.

“In Australia and New Zealand our wealth management business achieved a 13 per cent increase in operating earnings, despite the impact of challenging investment markets on fund values and revenues,” Owen says.

This performance was aided by a 9 per cent increase in the group’s funds under advice, and to a lesser extent by a marginal 2 per cent increase in funds under management and administration.

In Australasia, the group now has $41.8 billion in funds under management and administration and $3.5 billion in funds under advice.

Owens says despite the weak market conditions that have continued to hamper the industry this year, AXA has maintained its rate of fund flows and increased its market share in the process.

“Net retail fund flows were $903 million - a credible performance. We continue to consolidate our position in the industry, achieving a top five position in the master trust and portfolio administration platform market and for net retail flows.”

The group also experienced a solid performance in investment earnings over the six month period, up to $188 million, compared to $27 million last year.