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CFS sources replacement managers after FSI investment team closures

First-Sentier-Investors/CFS/colonial-first-state/fund-managers/

22 May 2024
| By Laura Dew |
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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
 

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