The AXA Life Europe Secure Advantage™1 product range comprises two guaranteed products and is the first new offering available to advisers via the newly combined AXA Wealth business. The products are provided within three tax wrappers - Retirement Solution (a personal pension), Trustee Investment Plan and Offshore Investment Plan. This choice of wrappers allows investors to access the product features in a way that fits with their current investment requirements and tax situation.
The Protected Capital product provides a minimum guaranteed capital amount equal to the initial investment at the end of 10 years, as long as no transfers out are made, with the option to annually lock in any growth from the underlying investments.
The Lifetime Income products provide a guaranteed minimum income for life based on the customer's age when income begins2.
Following a pilot with IFAs and listening to their feedback, the Secure Advantage™ proposition has been adapted to ensure key feedback provided was addressed prior to a wider launch to the adviser market as a whole. The feedback also highlighted what advisers felt were the benefits of the Secure Advantage™ range, which included the provision of a guaranteed income for life on the Lifetime Income product, the simplicity of the Protected Capital product and the fact that the fund range is actively managed providing access to a number of global markets and leading investment managers.
Tom Wilkinson, director of strategy and business development, AXA Wealth, said, “The Secure Advantage™ range shows how AXA is using its global experience to bring new offers to advisers with a selection of products suited to today's investors. The feedback from the pilot has demonstrated that the certainty of income or capital, from a well known brand like AXA, is welcomed in the UK market, particularly in today's uncertain environment.
“AXA Wealth can now provide advisers with access to an alternative investment solution for their customers looking for something different to traditional offerings in the market when faced with the challenges of on-going volatility, increasing longevity and the limited support from the state when saving or taking income in retirement.”
Reflecting the high volatility within the market, which seems likely to continue, investors are looking for stability whilst maintaining growth potential to counteract the rollercoaster activity in the market. AXA Wealth believes that the market is now ready for this new third way type of retirement solution. It also believes that the launch of the Secure Advantage™ range, benefiting from the global experience of AXA, will also encourage more competition to give investors what they need.
1 AXA Life Europe Limited is responsible for all aspects relating to the manufacture of the Secure Advantage™ range of products. The guaranteed capital and lifetime income are paid solely from the resources of AXA Life Europe Limited (AXA Life Europe). AXA Life Europe's guarantee has not been given by any other third party. This means the AXA Group or any other company in the AXA Group do not guarantee this product. AXA Life Europe has no legal right of access to the assets of the AXA Group. Any liability for the payment of the guarantee is therefore AXA Life Europe's.
2 Whilst there is a guaranteed minimum income for life, the value of fund that remains invested (and not subject to a lock-in value) can fall as well as rise and is not guaranteed.