AXA arm buys Barclays unit

The investment arm of French insurance giant AXA is to buy out the active fund management operations of Barclays Global Investors Hong Kong.

AXA Investment Managers will absorb US$1.3 billion in assets, largely institutional pension funds, and about 45 employees.

'This is simply the first step in building a strong presence in Asia, including Japan,' AXA Investment Managers' head of Far Eastern operations David Pinckney said.

About 4 per cent of AXA's clients and investment monies are sourced in Asia, with the balance split between North America and Europe. Mr Pinckney will be developing retail and institutional fund business in Asia.

'The retail investment environment is not easy at the moment. But the long-term prospects are extremely good and in the shorter term some of the problems will be behind us soon,' he said.

The AXA group has a presence in Asia through its 51 per cent owned National Mutual Insurance, based in Australia. National Mutual controls Hong Kong-listed National Mutual Asia.