CFS sources replacement managers after FSI investment team closures

First Sentier Investors CFS colonial first state fund managers

22 May 2024
| By Laura Dew |
image
image
expand image

Following the closure of four investment teams last month by First Sentier Investors, Colonial First State has proposed multiple replacement managers for the CFSIL funds.

It was announced in April that FSI would be closing its Australian Fixed Income, Global Credit, Equity Income and Emerging Companies teams. These teams encompassed 10 funds combined, affecting $14 billion in assets under management.

The changes are the result of “shifting industry dynamics such as client consolidation, internalisation of investment management and ongoing margin pressures as impacting the outlook for investment businesses”, the firm stated.

At the time, David Allen, FSI global head of investment management, said the four teams have been identified as being unable to achieve the growth targeted by the firm.

Several of the affected funds are Colonial First State Investments Limited (CFSIL) funds, and CFS has now announced it has sourced replacement managers including Janus Henderson, Longwave Capital and Macquarie, subject to due diligence.

In a statement, CFS said: “CFS has been actively sourcing well-credentialled replacement investment managers. Each replacement manager has a strong track record in the respective asset class and strong research house ratings. 

“We’re pleased to update investors with the progress of our review and that we are working to finalise the appointment of the proposed replacement managers in June 2024.

“FSI has committed to continuing to manage the funds in an orderly and prudent manner until the transition is complete.”

All proposed managers are subject to finalisation, due diligence and implementation, and portfolio transitions are expected to be completed from June 2024 onwards.

The replacement managers proposed are:

Investment option Proposed replacement manager
Developing Companies (via CFS Managed Investment Fund)

Macquarie Australian Emerging Companies

First Sentier Developing Companies (via FirstChoice)

Longwave Australian Small Companies

First Sentier Future Leaders

Investors Mutual Future Leaders

First Sentier Equity Income

Martin Currie Australian Equity Income

First Sentier Target Return Income

Daintree Core Income

First Sentier Australian Bond

Macquarie Australian Fixed Interest

First Sentier Global Credit Income

Janus Henderson Diversified Credit

First Sentier Diversified Fixed Interest 

Macquarie Dynamic Bond 

CFS Index Australian Bond

BlackRock Investment Management

Source: CFS, May 2024
 

Read more about:

AUTHOR

Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

JOHN GILLIES

tHOSE 989 WHO ARE CEASED WILL GO ON TO LIVE A LONG AND HEALTHY LIFE JG...

4 days 3 hours ago
Chris Cornish

What a sticth-up. Looks like Labor Senator Jess Walsh follows Stephen Jones who follows what the industry super funds ...

4 days ago
Peter Swan

This report is a blatant display of far-left factional partisanship, treating superannuation funds as state property and...

4 days 1 hour ago

ASIC has cancelled the AFS licence of a Sydney wealth firm, the fifth Sydney firm to see a cancellation since the start of the year....

2 weeks 5 days ago

More than 20 winners from the funds management industry have been crowned at this year’s awards....

1 week 5 days ago

ASIC has obtained interim orders from the Federal Court to freeze the assets of a registered managed fund and prevent its former director from leaving Australia. ...

6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND