AXA Asia Pacific has been feeling the effects of the global economic crisis, reporting a 27 per cent decline in total Australian wealth management inflows for the 2008 calendar year.
The company said market conditions had been challenging through the year, particularly for the wealth management sector.
Drilling down on specific segments of its Australian business, AXA Asia Pacific said advice gross inflows were down 5 per cent to $1.62 billion, as advisers focused on existing clients given the current market environment, with net flows down 80 per cent to $138.6 million due to an increase in pension outflows driven by an increase in pension funds in the past 12 months.
Looking at platform gross inflows, the company said they were down 30 per cent to $2.21 billion, reflecting the environment and an increase in pension payments driven by higher pension funds under administration.
It said investment gross inflows were down 28 per cent, influenced by an increase in outflows in international equities as investor sentiment shifted towards more conservative asset classes and income fund investors moved to bank deposits following the announcement of the Federal Government bank deposit guarantee.
By comparison, AXA Asia Pacific’s Australian insurance lines did better, with group risk new business up 97 per cent, individual life new business up 21 per cent and individual income protection up 6 per cent.
