Axa Wealth is targeting those looking for investment stability with a new suite.
The Axa Wealth Elite Diversified Market range is a set of five risk-rated portfolios ranging from level two to six, managed by Architas.
Passively managed funds, with a combination of UK and global bonds and equities, will make up the distribution.
The funds will be available through Axa Wealth’s Retirement Wealth Account, Investment Bond and Trustee Investment Plan, with no minimum investment and 0.45 per cent AMC.
The range is designed to provide low-cost pension solutions that take risk profiles into account. It is also able to access different markets, thereby reducing concentration on one geographical area.
There is apparently an ongoing demand from advisers for a range of solutions. Gone are the days when a provider would launch one diversified multi-asset fund; they now launch them as part of a suite, complete with risk ratings and asset allocations.
Having a range of funds doesn’t make one jot of difference as to whether an individual fund is right for your client. But if a provider has a range that you have faith in, have thoroughly researched and believe is a good offering, it can help when finding solutions that match a client’s risk profile.
The big push on this range appears to be cost – and it is relatively cheap, although you would also have to account for the wrappers it is available through – and diversity.
Indeed, in its asset allocations (an example of which is shown to the left) it goes further than to break allocations down into UK and global, as many similar ranges do; its equity allocation is separated into UK, Europe, North America, Japan, Asia ex-Japan and emerging markets.
A real difficulty remains for advisers in judging whether a range will be any good without a track record, although we all know past performance should not be relied upon. But sound judgment on management, asset allocation and approach can certainly help.