AXA Asia Pacific Holdings Ltd (AXA) says there has been an outflow of $8.6 billion from its Australian wealth management unit for the first nine months of this calendar year but 2010 is shaping up as a more positive period.
Net wealth management inflows for its Australian unit dropped by $10.7 billion in the nine months to September 30, AXA.
The financial services and wealth management group attributed the fall to the knock to investor confidence caused by the fallout from the global financial crisis.
Chief executive Andy Penn said on Wednesday industry sales remain well below 2008 levels, and all markets that AXA operated in were seeing a bias toward insurance products and away from wealth management.
"It's inevitable that investors and customers are still concerned and confidence will take some time to recover," Mr Penn told AAP.
"If the current improvement in equity markets is sustained and we don't have any further negative downturns in the market, I think 2010 will be a more positive year."
Total wealth management gross inflows for AXA's Australian unit were down 41 per cent to $5.82 billion compared with the previous nine-month period in 2008.
Total wealth management net flows for the local unit, which take into account outflows, dropped by $10.7 billion to an $8.6 billion outflow.
Sales of insurance products in Australia firmed eight per cent to $90.8 million over the nine months.
Across the group, AXA suffered a two per cent fall in total group funds under management, administration and advice (FUMA) for the nine months to September 30.
AXA's total group FUMA weighed in at $81.9 billion at September 30, while FUMA for its Australian operations fell three per cent to $59.91 billion.
Mr Penn said the New Zealand business had put in a strong performance in the September quarter, despite wholesale wealth management inflows dropping 25 per cent on lower inflows from Alliance Bernstein.
FUMA for AXA's New Zealand unit increased by eight per cent to $NZ6.76 billion ($A5.49 billion) over the nine months, thanks in part to continued growth in KiwiSaver and money from Gould Wealth Management clients being converted onto AXA's platform during the September quarter.
"There's been a much more adverse reaction against investing in equity-based products in New Zealand," Mr Penn said.
AXA's Asia units, which account for two-thirds of earnings, were mostly stronger with new business sales for South East Asia jumping 35 per cent.
But new business sales for Hong Kong slumped eight per cent to $HK1.7 billion ($A238 million) on lower equity markets, Mr Penn said.
AXA warned in August lower funds under management would dominate the remainder of calendar 2009 when it posted a 13 per cent fall in first half earnings.
At the time Mr Penn said he expected the rest of 2009 to remain tough with an earnings upturn in 2010 at the earliest, subject to equity market performance.
Goldman Sachs JBWere's Ryan Fisher noted the Hong Kong business has good momentum, but the upside for the remaining Asia units will not translate into earnings for a few years.
© 2009 AAP
