Australia’s First Sentier Investors will shut down four of its locally-based investment teams managing funds with about US$9 billon of total assets, partly due to ongoing margin pressures that are affecting its business.
Its Australian fixed income, global credit, equity income and emerging companies teams are being shuttered because the firm’s growth strategy requires a “clear focus on capabilities that are most relevant to our clients”, David Allen, First Sentier’s global head of investment management, says in a statement on April 23.
The statement did not disclose the asset size of the funds managed by the teams. The figure was provided by a First Sentier spokesperson, who also tells Asia Asset Management that around 30 people will leave the company.
According to Allen, shifting industry dynamics such as client consolidation, internalisation of investment management and ongoing margin pressures are impacting the outlook for investment businesses.
“We have looked across our business in Australia to ensure each of our investment capabilities has sufficient client demand to be commercially material and sustainable,” before making the “difficult decision” to close the four teams, he says.
