Barclays exits funds management in Australia
Barclays Capital has closed down its funds management business in Australia and returned the monies invested in its funds to the unit-holders, making three staff, including former Sealcorp and Challenger executive Caroline Saunders, redundant.
The funds management business, which had focussed on retail investors and financial advisers, was set up in 2007 and had about $70 million in funds under management spread across three specialised funds.
The funds, a long short commodity fund, a partially protected international share fund and a global macro fund, were pitched at financial planners and high net worth investors and were listed on platforms held by Westpac and AMP.
Monies invested in the funds were returned to investors after 5 June, which was the termination date for the funds.
According to a letter sent to investors in late May by the responsible entity of the Barclays’ funds, Celsius Investment Australia Limited (CIAL), Barclays had conducted a review of its investment management activities globally and decided the Australian funds management operation was not viable in the long term.
The letter from CIAL, which is a wholly owned subsidiary of Barclays Capital parent company Barclays Bank PLC, stated the review “included an assessment of the current scale and potential future growth prospects of the funds operated by CIAL in Australia”.
“Following such an assessment, Barclays has concluded that it is not viable to maintain its investment management activities with respect to such funds and has therefore notified CIAL that it will be withdrawing the investment management services it provides to CIAL.
“After considering options for the ongoing operation of the fund, CIAL has determined that it is not possible to continue to offer the fund’s investment strategy in Australia without the ongoing support of Barclays.”
Saunders, who was a director with Barclays Capital, had been with the group since 2008. It is understood that while local redundancies were small, the decision may have impacted staff in Singapore who supplied the investment and back-office administration work on the three funds.
Recommended for you
Bell Financial Group has appointed a chief investment officer who joins the firm from Clime Investment Management.
Private markets funds with “unattractive practices” could find themselves facing enforcement activity with ASIC chair Joe Longo stating he cannot rule it out in the future.
Despite ASIC concerns about private credit funds being accessed via the advised channel, there are questions regarding how high its usage actually is among financial advisers.
Challenger has looked to the superannuation industry for its appointment of a group chief investment officer, a newly-created role.
