AXA Wealth today announced that 40% of flows on the Elevate platform went into clean share class funds during March 2013. The total flows into clean share classes is split evenly between new money to the platform and switches of existing money, which suggests a significant change in adviser behaviour. In response to adviser demand AXA Wealth Elevate now offers over 1,600 clean share class funds with plans to add another 1,000 over the summer.
David Thompson, managing director of Elevate, AXA Wealth, said: “The level of interest we have witnessed in clean share classes suggests that advisers are increasingly embracing this option for their clients. We are seeing a growing trend for both new money to go into clean share classes and for existing holdings to be switched from the rebate paying share classes. As a result we plan to add another 1,000 clean share class over the summer.
“With the introduction of the RDR, the latest news from HMRC that rebates are to be taxed, ahead of the expected platform paper, sounds the death knell for fund rebates. It is too early to tell the exact impact the taxation on rebates will have on advisers. However, we expect the popularity of clean share class to increase dramatically as a result of the announcement, with advisers looking to invest with confidence that new money will not be subject to tax. Clean share classes also provide the clarity and transparency that the customer and the regulator require.
“As one of the only platforms on the market with a comprehensive set of clean share classes, advisers can put clients into clean share classes today on Elevate, and their clients will not have to suffer this tax.”
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