UK – AXA Investment Managers (AXA IM) is poised to buy boutique Framlington Group Ltd from HSBC Holdings and Comerica Inc for £174m (€252.1m).

Under the agreement, subject to the approval of the Financial Services Authority, FSA, AXA will buy 100% of Framlington Group Limited, which AXA said had £4.5bn under management at the end of June.

The acquisition will be financed internally within the AXA Group.

Lord Douro, chairman of the Framlington Group Ltd, commented that the sale to AXA would give Framlington “ a new life.”

Framlington’s fund range will be distributed across AXA’s European and Asian distribution platforms. The group will operate under the new brand name of AXA Framlington.

AXA IM has appointed its global head of Securities Investment Management (SIM), Robert Kyprianou, chief executive officer of the new entity.

Based in London, Kyprianou will report to Nicolas Moreau, chief executive officer, AXA IM. He will also continue as global head of SIM at AXA IM.

AXA Framlington will join the AXA IM multi-specialist model as an equity manager, with AXA Private Equity, AXA Real Estate Investment Managers, AXA Rosenberg and AXA Multimanager.

AXA pointed out that Framlington will retain its investment process. The management firm has also envisaged recruitment of additional investment managers and the creation of new products.

Moreau said: “Framlington is a great strategic fit for the AXA IM Group.” He added:” Our organisational structure enables us to give these groups the space to develop and grow their business whilst leveraging the strengths and benefits of the backing of a large group.”

“UK intermediaries can be reassured that we will preserve the strength and independence of Framlington’s fund managers”, Moreau said.

Lord Douro commented:“The sale of Framlington to AXA will give Framlington a new life.”

He continued that the deal would give fund managers the support of a large distribution network while at the same time the investment process and culture would be preserved.

“I wish Framlington well under its new owners,” he said.

Topics