It was previously announced that First Sentier Investors (FSI) would be closing its Australian Fixed Income, Global Credit, Equity Income and Emerging Companies teams, which encompassed 10 funds combined, affecting $14 billion in assets under management.
At the time, the firm explained 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.”
Several of the affected funds are Colonial First State Investments Limited (CFSIL) funds, with CFS now announcing several replacement managers including Janus Henderson, Longwave Capital, and Macquarie, following due diligence.
In a statement, CFS said it has been “actively sourcing” well-credentialed replacement investment managers.
“Each replacement manager has a strong track record in the respective asset class and strong research house ratings,” it said.
Macquarie has been announced as the new manager for a number of investment options, with Developing Companies (via CFS Managed Investment Fund) replaced by the Macquarie Australian Emerging Companies fund, First Sentier Australian Bond with the Macquarie Australian Fixed Income fund, and First Sentier Diversified Fixed Interest with the Macquarie Dynamic Bond fund.
Other changes include:
- First Sentier Future Leaders with Investors Mutual Future Leaders
- First Sentier Equity Income with Martin Currie Australian Equity Income
- First Sentier Target Return Income with Daintree Core Income
- First Sentier Developing Companies (via FirstChoice) with Longwave Australian Small Companies
- First Sentier Global Credit Income with Janus Henderson Diversified Credit
- CFS Index Australian Bond with BlackRock Investment Management
All proposed managers were subject to finalisation, due diligence and implementation, and portfolio transitions are expected to be completed from this month.
