Carnegie restructures operations, launches new AM business
Carnegie, the Nordic financial services company, has announced a reorganisation of its operations that will result in a new asset management business including both the Swedish Carnegie Fonder and the Danish Carnegie Asset Management, and which will have AUM of some SEK175bn (€18.6bn).
The change comes as the asset management businesses are moved from their position as part of Carnegie Holding – which itself will be reformulated to focus on private and investment banking services under the name Carnegie Investment Bank. The bank will have Björn Jansson as its new CEO. He has previously led a significant part of Carnegie’s operations.
Hans Hedström, CEO of Carnegie Fonder, said: “Gathering all asset management into one unit is a logical, positive move. It will give Carnegie Fonder increased flexibility and greater opportunities to develop it operations.”
In a written letter to unit holders in Carnegie’s funds, Hedström wrote that the new structure is intended to be in place by April 2016.
“At Carnegie Fonder, we wholeheartedly support this solution. A restructuring places us in an even better position to meet the challenges we face and to continue to create a strong offering for our clients in the long term. We have always been independent and a separate legal entity, but we are now being placed into a structure that is focused on one thing – asset management.”
“Carnegie Fonder’s operations began in 1988 with Swedish equity funds, and have since been expanded to include both fixed-income funds and emerging market funds. Today we have SEK55bn in managed assets with hundreds of thousands of unit holders, 13 funds and a fourteenth in the pipeline. Through the years we have had different names and different owners, but one thing we have never altered is our management philosophy. We devote ourselves to focused value management, and we intend to continue doing so.”
Bo Almar Knudsen, CEO of Carnegie Asset Management, said: “We look forward to continue building the Carnegie asset management brand by offering our customers the best products and services. We are well on the way to building one of the world’s best asset management boutiques.”
Under the restructuring, Carnegie Fonder will be sold to a newly formed company that will als own Carnegie Asset Management. CAM was spun off from Carnegie Investment Bank in 2010, and is owned by Altor Fund III and CAM employees. Headquartered in Copenhagen, the manager offers products including the Carnegie WorldWide Fund.
Both brands will continue to operatate, and the Swedish and Danish businesses will “continue their constructive collaboration as two independent units,” according to a statement on the change.
By offloading Carnegie Fonder, the Carnegie Investment Bank AB will be in a “strong financial position” in regards to capitalisation and regulatory requirements, the group stated.
The group finished paying off its debts to the Swedish National Debt Office. These were put in place following the global financial crisis when Carnegie was first taken over by the Debt Office, before being sold on to Altor and Bure in 2009.
In 2010, Carnegie took over HQ Bank and HQ Funds in Sweden. It is now redeeming the loan and preference shares held by Öresund and Creades since that acquisition.
Carnegie Fonder’s fund range currently includes Sweden equity funds, fixed income funds, and emerging and frontier markets funds.
Carnegie Asset Mangement in Copenhagen offers Luxembourg domiciled Ucits strategies, as well as a couple of non Ucits strategies. It also offers sector funds, focused on healthcare and biotech.