Colonial splits off funds management
Colonial First State Investments has today split its underperforming funds management arm from the remainder of its wealth management business after a wide-ranging review.
The funds management arm, which will include Colonial’s Australian asset management operations and its First State International subsidiary in the UK, will operate as a separate business unit under the changes.
Colonial will appoint a new head to lead the business, which will be known as Colonial First State Global Asset Management.
The current general manager of investments at Colonial, David Dixon, will take responsibility for Australian equities under the new structure, while Tom Waring will continue to head the international assets division.
John Pearce, formerly chief executive of the entire Colonial First State Investments, will be responsible for the group’s wealth management operations outside of funds management.
This includes Colonial’s financial planning businesses, as well as product development and retail distribution.
Commonwealth Bank of Australia group executive wealth management, Stuart Grimshaw, said in a statement this afternoon the changes were aimed at driving “sustained and strong investment management performance”.
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