MUFG completes acquisition of CFSGAM

Friday, 2 August 2019: Leading global investment manager, Colonial First State Global Asset Management (CFSGAM) today announced the completion of its sale from Commonwealth Bank of Australia to Mitsubishi UFJ Trust and Banking Corporation, a wholly-owned subsidiary of Mitsubishi UFJ Financial Group, Inc. (MUFG), for AUD$4.0 billion.  

Since its inception in 1988, CFSGAM, known as First State Investments outside of Australia, has evolved into a global investment management business with funds under management of AUD$218.4 billion^[1] on behalf of an international client base that extends across Asia, Australasia, Europe and North America.  

MUFG manages AUD$809 billion^[2] in funds on behalf of its clients. Its subsidiary Mitsubishi UFJ Trust and Banking is one of Japan’s largest asset managers.  

CFSGAM will operate as a standalone global investment management business, governed by a Board initially comprising representatives from CFSGAM and Mitsubishi UFJ Trust and Banking. It is expected that the Board will be expanded to include independent non-executive directors in the coming year. 

Mark Steinberg, CFSGAM Chief Executive Officer (CEO), commented that the transition in ownership means CFSGAM now has the strategic support to continue the growth of its global business.  

“Today marks an important day for our business. Under MUFG ownership, we will have the financial backing and shared strategic vision to enable us to become an even stronger global investment manager. 

“Our investment teams will continue to enjoy their current levels of investment autonomy, which has underpinned the business’ strong growth and long-term performance. Importantly, their commitment to incorporating ESG principles across their processes and strategies will remain central to their investment approach.  

“We maintain a consistent firm-wide view on our important role and responsibility as a steward of our clients’ capital. This underpins our corporate identity and will continue to be the binding element across our various investment teams’ philosophies and strategies,” Mr Steinberg said. 

CFSGAM offers a comprehensive suite of investment capabilities across a number of sought-after asset classes managed by experienced investment teams, some of whom have been investing for clients for over 25 years. Specialist capabilities include global emerging markets and Asia Pacific equities (managed by the First State Stewart Asia and Stewart Investors investment teams), listed and direct infrastructure, Australian equities, fixed income and multi-asset solutions. 

Harry Moore, CFSGAM Managing Director, Australia, added: “Our focus on providing our clients with the highest quality, long-term investment capabilities remains as strong as ever. We are extremely excited about our future under new ownership, and how we can further develop our business in the interests of our clients.” 

Mikio Ikegaya, President and CEO of Mitsubishi UFJ Trust and Banking, commented: “From the outset, we have regarded CFSGAM as a well-recognised global business, synonymous with first-class investment professionals and strong fund performance.  

“We are committed to supporting CFSGAM’s strategy of delivering high-quality investment capabilities and establishing and maintaining strong client relationships. We look forward to working with CFSGAM as we continue to expand our investment management business and investment offerings globally.”

Read the ASX media release here >

[1] Source: CFSGAM as at 31 March 2019.

[2] Source: Mitsubishi UFJ Financial Group, Inc. as at 31 March 2019.