Having sold CommInsure and Sovereign to AIA, Commonwealth Bank of Australia launched a «strategic review» of Colonial First State Global Asset Management.
Colonial First State Global Asset Management (CFSGAM), also known as First State Investments outside Australia, is undergoing a strategic review, with the possibility of a listing on the Australian Securities Exchange (ASX).
The Commonwealth Bank of Australia (CBA) announced the review will consider a range of options, including an initial public offering, and is due to be completed by the end of the year. It has been estimated that, as a listed entity, the asset management company could be worth in excess of $4 billion Australian dollars.
Global Investors
In a press release CBA said the review will consider long-term CBA shareholder value, including whether a separately-listed CFSGAM would be better able to grow its business, service the interests of its clients and attract and retain key personnel.
CFSGAM runs a global diversified investment management business, with $219 billion in assets under management, including listed and unlisted infrastructure, on behalf of some of the world’s largest institutional investors.
Troubled Times
Following a run of incidents damaging public trust, the Australian banking regulator is set for an unprecedented public inquiry into CBA, Australia's largest bank. In recent years CBA has been embroiled in scandals regarding substandard financial advice, wrongly denying some life insurance claims on the basis of of outdated medical definitions, and allegations of a mass breach of anti-money laundering laws.
Ian Narvev the beleaguered boss of the bank also had his bonus cut to zero and the bank's board has addressed his future. CBA chair Catherine Livingstone termed it a «retirement,» with Narev's exact departure date dependent on how quickly the bank can replace him.
