SWEDEN - Nordic investment bank Carnegie’s Swedish pension consulting arm has been taken over by advisory firm Max Matthiessen.

The move comes amid what Carnegie terms a “structural change” in the pension consulting market.

Carnegie Pension Consulting AB will be taken over by Max Matthiessen and Carnegie’s fund management products will be offered to Max Matthiessen’s 135,000 clients, the two firms said in a statement. Financial terms of the deal were not disclosed.

“There is increasing interest in long-term pension savings, our clients are demanding broader independent financial advice, and we want to be ahead of the game,” said Max Matthiessen deputy chief executive Christoffer Folkebo.

“The co-operation with Carnegie gives Max Matthiessen’s clients access to advisory services from a leading investment bank.”

Explaining the decision, Lars Risland, managing director of Carnegie Pension Consulting, said: “Carnegie must be the leading player in its business areas.

“The pension area is undergoing structural changes and we are convinced that economy of size is of paramount importance if we are to offer our clients the best solutions in the most cost efficient way.

“That is why we have chosen to co-operate with the leading player in the pension market.” The agreement would not have any “material result effects” for Carnegie in the current financial year.

Competition in the pension market has been heating up recently, with new entrants from non-traditional areas. Hedge fund managers such as Brummer & Partners as well as private bankers such as Hagströmer & Qviberg are supplying investment and pension advice.

Aon Consulting entered the market in September, saying it aimed to become market leader by 2007.

In November Carnegie cut 20 staff in Sweden following a “streamlining” of the organization. The company disclosed earlier this month that Iceland-based investment company Burdarás has built up a 20.1% stake in the firm.

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