The Commonwealth Bank of Australia has sold global investment management company First State Investments (FSI) to Mitsubishi UFJ Trust and Banking Corp. for $2.7 billion, FSI announced Aug. 2.
One of Japan’s largest asset managers, Mitsubishi UFJ Trust and Banking is a subsidiary of Mitsubishi UFJ Financial Group (MUFG), which manages $575 billion in funds on behalf of its clients.
FSI will operate as a standalone global investment management business governed by a board of directors initially composed of representatives from the two companies, before expanding to include independent nonexecutive directors in the coming year, according to the firm.
"Our investment teams will continue to enjoy their current levels of investment autonomy, which has underpinned the business' strong growth and long-term performance,” said Mark Steinberg, CEO of FSI in a statement. “Their commitment to incorporating ESG principles across processes and strategies remains central to each investment approach.”
He added, "We maintain a consistent firm-wide view on our important role and responsibility as a steward of our clients' capital. This is the foundation of our corporate identity and will continue to be the binding element across our various investment teams' philosophies and strategies.”
FSI manages $155.1 billion on behalf of an international client base that extends across Asia Pacific, Europe and North America.
