PlatformsNov 12 2015

Axa discounts Distribution fund to boost platform assets

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Axa discounts Distribution fund to boost platform assets

Axa Wealth will offer a discounted rate for Axa Investment Manager’s Distribution fund.

The company will now offer the fund through its Elevate platform, Investment Bond and Retirement Wealth account allowing advisers to benefit from a mix of equities and a range of selected inflation-linked bonds.

The fund is available at an exclusive discounted rate for advisers using its wrap platform, Elevate, with a new clean share class price of 51 basis points.

The lower price saves up to 25 basis points.

David Thompson, managing director of business development and proposition at Axa Wealth, said: “Generating income is vital, both during the accumulation stage and once people retire. And while nothing in investing can be guaranteed, the Distribution fund targets regular income for clients.

“This is one of the reasons we know many advisers are big supporters of the Axa Distribution fund.

“By investing with us advisers and customers can continue to benefit from the original team and strategy that made them select the Distribution fund in the first place. Not all distribution funds are the same. Our message is: beware of expensive imitations.”

Mel Kenny, Chartered Financial Planner at Radcliffe and Newlands, said: “It is not unusual to see flagship funds sold at a discount in this way in order to get the footfall of other assets coming under management.”

Jason Hollands, managing director of business development and communications at Tilney BestInvest, said in a world of lower returns, shaving the fee on this steady eddy fund is undoubtedly helpful, but of course the prerequisite is for intermediaries to use Axa’s Elevate platform.

He said: “Axa’s Distribution fund strategy is the granddaddy of this type of conservative investment approach which blends blue chip equities and index linked bonds.

“Veteran manager Jim Stride is undisputedly the biggest beast in the index-linked bond market, working alongside Richard Marwood from Axa’s well regarded UK equity team.”

lucinda.borrell@ft.com