"We certainly want to see growth in funds management," NZ chief executive Ross McEwan says. "We have some fairly aggressive targets for the next three years."
He says it will take the company three to five years to get into the position it wants to be in.
AXA has built up its management team in the past year and is using its Selected Equities fund to illustrate it is capable of successful active management.
While the fund is small it has posted strong performance numbers over the past year.
It also wants to push its new Global Equity fund which is managed by New York-based Alliance.
To date AXA is a just a mid-sized player in the managed fund market, and it hasn't been a big benefactor of funds flow. According to IPAC stats AXA experienced outflows of $15.5 million in the 12 months to September 30. Likewise, in the previous 12 month period AXA had outflows of $57 million. Part of the outflows in the past 12 months can be attributed to a product rationalisation.
McEwan says two of the key areas of focus for AXA will be in the personal and corporate master trust markets.
Two years ago National Mutual planned to roll out its own master trust business called Jigsaw, however that was put back in the box as the company felt there was insufficient growth in the market to reach critical mass.
McEwan says it was the right concept at its time, but things have moved on. Now AXA plans to opearte in what it calls the "personal master trust offerings". The main products it has in this area are its Personal Retirement Plan (PRP) and Goldline.
These are essentially products where investors can "pick 'n mix" their sectors and risk profiles.
While AXA is keen to grow its funds management operations, it won't be at the expense of its risk products.
McEwan says AXA experienced strong growth in the pure risk products last year, and it wanted to continue this trend.
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