by Rob Hosking
The company’s half yearly result shows a good result for the New Zealand part of the business – but with some areas performing less than satisfactorily.
The main one appears to be the small decline in funds under advice. “The market as a whole is still not growing, largely as a result of the disadvantageous tax structure for pooled and mutual funds,” says AXA’s commentary on its result.
It puts this down to the booming property market, and the surge in “high yielding, often high risk finance company debentures.”
“The New Zealand Government has announced a change to create a level playing field and plans to grow private superannuation savings. We are confident that over the medium term our strong position in professional advice will lead to a return to growth.”
Meanwhile, the company will continue to develop its adviser support programme, Activating Business Change.
Overall, AXA New Zealand contributed gross inflows of A$115.0 million to the final result – a 48% increase on 2005’s $78 million.
“Growth largely came from mezzanine unit trusts including strong support for the Global Equity Growth fund. Our mortgage backed bond product launched in the fourth quarter of 2004 received solid support with $53 million in retail funds under management after only relatively recent promotion in the market.”
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
| « McCrea joins Money Managers | Sovereign takes regulation bull by the horns » |
Special Offers
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved