Carne Group appointed as Management Company for AXA Investment Managers’ new Euro Long Term Credit Fund

22 October 2024 – Carne Group (Carne), Europe’s leading third-party management company and provider of fund regulation and governance solutions for the asset management industry, is pleased to announce its collaboration with AXA Investment Managers (AXA IM) on the launch of its new Euro Long Term Credit Fund.

This is the Irish UCITS, euro-denominated equivalent of AXA IM’s Sterling Long Term Credit fund (launched in 2019), providing institutional clients with long-term exposure to European investment-grade credit for potentially attractive yields and improved portfolio diversification, liquidity and ESG characteristics.

Like its Sterling LTC equivalent, the new European fund uses AXA IM’s ‘Buy and Maintain’ capability to build a well-diversified, benchmark-agnostic, long-dated credit portfolio that delivers predictable cash flows. A proven approach adopted by AXA IM for over 20 years, ‘Buy and Maintain’ aims to deliver on the key client objectives of cashflow delivery and/or efficient credit premium while drastically reducing transaction costs and preventing schemes from becoming a forced seller during a market sell-off.

Building on the existing Sterling LTC fund’s track record of almost five years, the fund will provide stable credit returns and long duration for pension funds. It will also allow European pension schemes to de-risk as their funding levels improve while continuing to support their funding level improvements.

Carne will act as the management company, overseeing management of the fund.

Mark Stockley, Chief Business Development Officer at Carne Group, commented: “We are delighted to act as the management company for the Euro LTC fund. As European pension schemes de-risk and seek diversified credit solutions, we are seeing growing demand from asset managers to find faster and more efficient routes to market. There is an increasing shift towards outsourcing as managers see the benefits of working with third-party specialists such as Carne Group to achieve their objectives”

Herschel Pant, Head of Global Consultant Partnerships at AXA IM, added: “Since 2019, our UK pension clients have been able to rely on our Sterling LTC strategy to pay their members’ pensions. Whether clients plan to do an insurance transaction (which some have) or keep running the scheme, the LTC strategy has allowed them to take the first step in their de-risking journey in an efficient manner. We’re therefore excited to be working again with Carne to broaden access of this popular strategy to European clients, supporting them as they navigate their de-risking journey.”

Lionel Pernias, Head of Fixed Income Investment Solutions at AXA IM, added: “We are proud that our fundamentally driven credit strategy has navigated various challenging markets over the past 20 years, delivering on our pension promises. We are excited for the next stage of our LTC journey into Europe.”

-ENDS-

About Carne Group

Founded in 2004, Carne Group is an international company that has established itself as an expert and pioneer in fund regulation and governance solutions, allowing it to become Europe’s leading third-party management company and trusted partner to the fund management industry.

Carne works with more than 650 clients – from boutique fund managers to global institutional investors – supporting funds distributed in over 160 countries and overseeing more than $2 trillion assets under management. Carne employs more than 600 employees worldwide. https://www.carnegroup.com/

About AXA Investment Managers

AXA Investment Managers (AXA IM) is a leading global asset manager offering a diverse range of global investment opportunities in both alternative and traditional asset classes. Through our products we aim to diversify and grow portfolios, while delivering long-term investment performance and value for clients.

AXA IM manages approximately €859 billion in assets*, and has €480 billion of ESG-integrated, sustainable or impact assets**. Our purpose is to act for human progress by investing for what matters. As a responsible asset manager, we are committed to integrating ESG principles across our business, from stock selection to our corporate actions and culture.

Part of the AXA Group, a worldwide leader in insurance and asset management, AXA IM employs over 2,800 employees and operates from 23 offices in 18 countries globally**.

*As at the end of June 2024, including non-consolidated entities.

** As at the end of December 2023.

Visit our website: www.axa-im.com

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Press contacts:

Carne Group

FTI Consulting – carnegroup@fticonsulting.com

AXA Investment Managers

Jamie Wynn-Williams – +44 20 70 03 26 80 // jamie.wynn-williams@axa-im.com