Key points
- Creation of an Alternatives Investments business unit, “AXA IM Alts”, led by Isabelle Scemama
- Strengthening of the Core Investments business unit, “AXA IM Core”, led by Hans Stoter
- Both business units operating under the AXA IM brand and leveraging existing transversal global functions
“We strongly believe in leveraging both traditional and alternative asset classes to further provide investors with adequate responses to the current hunt for yield and to bring them long-term value. We want our organization to reflect this belief and that is why we aim to implement a simplified structure comprised of two key strategic business units. With more focus and proximity to our clients, we will become even more relevant to their evolving needs while accelerating the profitable growth of our business.”,
Gérald Harlin, Executive Chairman of AXA IM.
Responding to the need for yield in a competitive environment
In a persistent low rate environment, investors are increasing their appetite for alternative investments as well as innovative and outcome-oriented strategies, with ESG integration and impact becoming strong drivers of their choices. AXA IM will respond to these trends by leveraging decades of deep understanding of investors’ needs as well as combining recognized investment capabilities and ESG expertise for the benefit of retail and institutional clients. In addition, in order to enhance the quality and relevance of its interactions with clients and to respond to their rapidly evolving needs, AXA IM intends to bring together its client-facing and investment teams.
AXA IM aims to create AXA IM Alts, a new business unit encompassing the Real Assets, Structured Finance and Chorus[1] investment platforms, totalling €137 billion of assets under management[2]. AXA IM would leverage 30+ years of successful execution track record to better answer clients’ investment challenges, generating additional cross-sourcing opportunities and market insights.
A dedicated sales force would be created within AXA IM Alts leveraging both the current Real Assets sales force and a part of the existing AXA IM Client Group Institutional sales teams, bringing a much deeper understanding of the full breadth of alternatives investment solutions to clients.
AXA IM Core, which comprises the Fixed Income, Framlington Equities and Multi-Asset investment platforms, will be further strengthened by the addition of Rosenberg Equities, combining assets under management to a total of €536 billion[3]. The Rosenberg team has built an industry-leading data platform and has deployed advanced data science approaches, thus bringing important value to AXA IM Core. As is the case with other AXA IM strategies, Rosenberg Equities has fully integrated ESG into its offering. AXA IM Core will thereby continue its journey to increasing collaboration and cross-fertilization, creating value for clients and AXA IM teams.
The existing AXA IM Client Group sales, marketing and product development teams would be integrated within AXA IM Core[4] to increase proximity between portfolio managers and client-facing employees, thus enhancing AXA IM’s agility for the benefit of clients.
These changes are being discussed with employee representatives. They should be implemented in Q2 2020.
A simplified and more focused organization
AXA IM’s goal is to make AXA IM Alts and AXA IM Core the backbone of its organization and to empower recognized leaders to drive their business focusing on growth and value creation for clients:
- Isabelle Scemama, CEO of AXA IM Real Assets, would be appointed Global Head of AXA IM Alts in addition to her current role;
- · Hans Stoter, Global Head of Core Investments, would becomeGlobal Head of AXA IM Core.
The following changes are announced:
- Deborah Shire, Global Head of Structured Finance, would additionally become Deputy Head of AXA IM Alts in charge of Corporate Development and a member of the AXA IM Management Board, reporting to Isabelle Scemama.
- Florence Dard, Global Head of Business Development for AXA IM Real Assets, would become Global Head of Client Group, Alts in addition to her current role and report to Isabelle Scemama.
- Matthew Lovatt, Global Head of Framlington Equities, would become Global Head of Client Group, Core, reporting to Hans Stoter, and a member of the AXA IM Management Board.
- After 18 years with Rosenberg and three years as CEO, Heidi Ridley has decided to pursue new professional opportunities focused on diversity and ESG topics. Heidi will step down on March 31, acting as a senior advisor until the end of April. Paul Flavier, currently Chief Risk Officer of AXA IM, will become Head of Rosenberg Equities from March 31, reporting to Hans Stoter. Paul will bring a strong investment background to Rosenberg and leverage the team’s recognised expertise for the benefit of our clients. Matthieu Tonneau, currently Head of Solutions Portfolio Management and LDI within AXA IM Core, will replace Paul Flavier as Chief Risk Officer
- Bettina Ducat, Global Head of Distribution Client Group, has made the choice to continue her career outside the AXA Group after spending 13 years with AXA IM. She will support the organisation until the end of June.
- After spending eight years at AXA IM in different investment and commercial roles, Francisco Arcilla, Global Head of Institutional Client Group, has decided to leave AXA IM to pursue entrepreneurial ventures in Switzerland. Effective immediately, Matthew Lovatt becomes interim Global Head of Institutional Client Group in addition to his current role as Global Head of Framlington Equities.
“I am delighted to have onboard the leadership and recognised expertise of Isabelle, Hans, Deborah, Florence, Matthew, Paul and Matthieu to help me drive AXA IM and I look forward to our continued collaboration.”
“Heidi, Bettina and Francisco have all contributed immensely to AXA IM’s journey and I would like to warmly thank them. Their unwavering desire to put the client first, their drive and their ability to lead and inspire have truly made a difference. I wish them the very best in their future endeavours.”,
Gérald Harlin.
