2008
(02/01/2008) Market volatility to drive business growth for IFAs
According to new findings from AXA over a quarter (26%) of IFAs are "very confident" about the prospects for business growth over the coming year and a further 53% are "quite confident" despite the widespread concerns about financial slowdown and stagnating growth in the housing market.
The survey of IFAs across the country, undertaken by AXA Wealth Management, also demonstrates that IFAs anticipate a shift in client expectations and investment choices, with 41% of those polled believing stock market instability will result in an increase in the alternative investments business.
Almost half (49%) of IFAs said they would be recommending more cautious investment products and funds to customers in 2008. However, clients do not seem to be sharing this caution with over half of IFAs (54%) claiming that the current stock market volatility was having no impact on clients’ investment preferences. Just 12% of IFAs said their clients were sticking to cash-based investments until the market became less volatile. A further 6% said clients were favoring deposit-based investments and 6% were actually looking for capital protection.
Nick Turner, Director of Sales, AXA Wealth Management, said: "Supporting clients with their long term financial planning needs is a key area of growth for IFAs. During these difficult market conditions it is especially important to keep a close eye on client portfolios in order to provide some cushion from market fluctuations.
"The more complicated the marketplace the more clients need well balanced financial guidance. We share this confidence in the outlook for business growth and look forward to working alongside intermediaries to help provide the investment solutions needed by their clients in these turbulent times."
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About AXA
AXA UK is a part of the AXA Group. AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse geographically, with major operations in Europe, North America and the Asia/Pacific area. For the full year 2006 global IFRS revenues amounted to €79 billion.
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AXA Wealth Management
AXA Wealth Management comprises the IFA operations of Sun Life Assurance Society and AXA Equity and Law after their operations were merged in 1997. The majority of AXA Wealth Management's business comes from independent financial advisers, the rest from appointed representatives.
In the UK the two AXA companies offering the Wealth Management proposition are, Winterthur Life UK Limited (registered no.3116645) and AXA Sun Life Services PLC (registered no.3424940).
Winterthur Life UK Limited and AXA Sun Life Services PLC are authorised and regulated by the Financial Services Authority. Both companies are registered in England and have their registered office at 5 Old Broad Street, London, EC2N 1AD.