AXA Wealth Specialist Products has launched a series of risk-profiled passive portfolios, called the AXA Wealth Elite Diversified Market Range
The range, which is managed by Architas' team of investment professionals, is primarily built from a portfolio of different passive funds that aim to track a range of market indices.
Each fund within the new range, available through AXA Wealth's standalone products - the Retirement Wealth Account, Investment Bond and Trustee Investment Plan - has a different asset allocation, based on its risk profile.
The range is risk-profiled to control the amount of risk investors are exposed to and is exposured to different markets so it does not rely on a single market index performance.
AXA Wealth Specialist Products managing director Nick Elphick said: "Our new range of passive funds, which sit within five different risk-profile bands, offer advisers and their clients a lower-cost, long-term investment strategy.
"Greater asset diversity is also important. Put simply, the diversification of the underlying assets means clients are not putting all of their eggs in one basket. This diversification may help to reduce the combined risk of the overall portfolio and limit the reliance on the performance coming from any one part."
The Department for Work and Pensions has identified a need for low cost investment solutions within pensions.
By combining risk-profiling with passive funds, Axa said, it is possible to create a retirement solution that allows clients some control over the amount of investment risk they take that is typically available for less than 0.5% per year.
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