June 18, 2018 / 1:03 PM / a month ago

Axa fund arm to cut staff, invest 100 mln euros in major overhaul

PARIS, June 18 (Reuters) - AXA Investment Managers, the fund arm of French insurer AXA, on Monday said it planned to cut around 200 staff and invest 100 million euros ($116.10 million) in technology and other priority areas as part of a wide-ranging restructuring.

The move comes as the active asset management industry faces rising regulatory costs and pressure on fees as more investors look to use cheaper, index-tracking funds, prompting a rise in merger and acquisitions across the sector.

“I believe the steps we are looking to take not only respond to our industry challenges in terms of customer centricity but also provide AXA IM with an inspiring vision and roadmap for the future,” Andrea Rossi, chief executive of AXA IM said.

As part of the revamp, AXA IM said it would be split into four business areas and the management board would see three new appointments.

Savings made through the reorganisation, which could involve staff cuts of 9 percent in the UK and just over 10 percent in France, would be reinvested in growth areas including technology, alternative investments and ESG investing.

“Accelerating our strategy as an active manager thanks to new ways of operating and a simpler organisation, notably in the alternative investment space, while becoming even stronger in core investments will foster sustainable growth for the ultimate benefit of all our stakeholders,” Rossi said. (Reporting by Simon Jessop ; Editing by Matthias Blamont)

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