First State Investments goes to US
FirstState Investments, the UK investment arm of Colonial First State Investments, has entered into an agreement that will see it directly market its own institutional products and manage its own client relationships in North America.
First State’s North American distribution of institutional products was previously carried out through a partnership with the Boston-based investment manager David L Babson and Company, a member of the MassMutual Financial Group.
The partnership, known as Babson-Stewart Ivory International, commenced in 1987 and raised more than US$1 billion in funds under management.
As a result of the deal, First State will acquire Babson’s 50 per cent stake in the joint-venture, allowing it to go it alone in the potentially lucrative North American market.
The chief executive of First State Investments, Rob Adams, says the deal is a result of growing demand for the group’s global equities and emerging markets products, as well as recognition of its ability to market its institutional products independently.
“It is clear there is strong demand for our services in North America, as we have won several new mandates in recent times,” he says.
“This acquisition is an important step for us to take to ensure we realise the benefits of that demand in the world’s largest institutional market.”
First State Investments manages all global equities and global fixed income assets for Colonial First State Investments and has more than US$11 billion in funds under management.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.