Axa Wealth has written to both advisers and customers to inform them that it will be closing 115 funds.
The firm said in a statement that as part of its regular review process it looks at the funds its customers are invested in. “As is normal with this process there are sometimes funds that, for commercial reasons, we need to close; on this occasion we are closing 115 funds.
“Using the investment expertise we have within the business we select appropriate alternative default funds, however advisers and their clients are free to move their money into a fund of their choosing,” the statement read, adding that it does not charge clients to switch to alternative funds.
The funds are closing between 23 November and 7 December, with closures being staged over a couple of weeks depending on the funds.
Axa Wealth added: “Of our customers that are affected, each customer and adviser has been sent the exact date their funds will close.”
Earlier this week, the firm’s latest results update showed that funds under management improved 14 per cent to £30.4bn during the third quarter from £26.6bn in the same period last year, driven by new business on its platform and through its multi-manager arm.
Last month, Axa Wealth’s chief executive Mike Kellard told FTAdviser sister paper Financial Adviser that the restructuring in 2010 left behind a loss-making wealth management firm with enormous start-up costs.
He admitted that “some tough targets” were set for Axa Wealth, with an insider claiming that the French parent initially gave Axa Wealth a five-year target of £45bn assets under management which was lowered in 2012 to £34bn.