Aussie asset manager to close A$14b funds

First Sentier Investors, an Australian asset management firm owned by Mitsubishi UFJ Financial Group Inc., will close investment funds totaling A$14 billion ($9 billion) and return the capital to investors, marking a strategic retreat from low-margin sectors, Bloomberg reported.

The closure affects four investment teams specialising in Australian fixed income, global credit, equity income, and emerging companies, representing less than 6 per cent of the firm’s A$238 billion global assets under management.

Approximately 30 staff, including Stephen Cooper, head of Australian and New Zealand fixed income assets, will depart due to the changes.

This move reflects the broader challenges facing asset managers in Australia, as pension funds increasingly internalise investment functions or opt for flat-fee structures.

First Sentier intends to refocus on differentiated investment offerings and relevant capabilities to drive future growth amidst evolving industry dynamics.

First Sentier Investors

Founded in 1988, the firm, formerly known as First State Investments globally, manages assets across various sectors, including global equities, fixed income, infrastructure, property, and alternative credit.

The decision to close these funds underscores a strategic shift towards meeting evolving client demands and enhancing long-term performance.