Colonial First State (CFS) has approved all alternative managers for its funds, following the closure of four First Sentier Investors (FSI) teams.
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.
According to the firm, the changes were 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”.
Several of the affected funds were Colonial First State Investments Limited (CFSIL) funds. CFS announced in May that it had sourced potential replacement managers, including Janus Henderson and Macquarie, which were 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.”
Following the approval of Longwave Capital Partners earlier this month, CFS has since confirmed all of its replacement managers of the funds.
These are:
| Investment option | 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, June 2024
On 20 June, CFS stated: “There is no immediate change to the option names, however we will update these at the next available opportunity.”
