AXA IM  

Axa launches lower cost Lifetime fund share class

Axa launches lower cost Lifetime fund share class

Axa IM has launched a lower-cost share class of its Lifetime Distribution fund, saying this is a "neat solution for clients looking for a simple inflation-plus return".

The fund, which invests in UK-listed companies and UK government index-linked gilts, is aimed at those looking for lower volatility and the new share class is at 46 basis points.

The Axa Lifetime Distribution fund is a cautiously managed portfolio that seeks to offer investors the opportunity to take a monthly income while also providing an opportunity for capital growth.  

Rob Bailey, head of UK wholesale distribution at Axa IM, said: "We have launched this share class to meet the demand of clients looking for an inflation beating solution with equity exposure coupled with the protection afforded by an index-linked bond portfolio.

"The style in which the bond portfolio is managed has enabled us to lower the cost of this strategy for clients and allows us to remain competitive in today's market."

He said index-linked gilts held within the portfolio are managed on a low turnover basis to reduce trading costs, enabling Axa IM to keep the overall fees at a low level.

Jamie Forbes-Wilson, manager of the Axa Lifetime Distribution fund, said: "We believe that the Axa Lifetime Distribution fund offers investors a neat solution for clients looking for a simple, inflation-plus return.

"This fund seeks to meet the needs of those looking to satisfy both growth and income requirements in real terms."

Paul Davis, an adviser at Clear Financial Advice in Essex, said where he had clients requiring lower volatility, it tended to be elderly clients with a lot of cash in Isas.

He said: "With interest rates being low and inflation high, they want something that would give them a little more return."

He said he uses Cornelian's risk-targeted funds for this purpose.

Mr Davis said: "They are very good at tempering volatility without giving up too much reward, because it is an active daily managed portfolio."

When asked about the cost of the share class, he said despite Axa cutting charges he tended to feel that charges were secondary to performance.

He said: "You only get what you pay for, so if expectations are being met and funds are outperforming it is almost secondary."