CBA selling off its global asset management business
(17 April 2018 – Australia) Following a strategic review last year the Commonwealth Bank of Australia will float its global funds management arm, Colonial First State Global Asset Management.
CBA has announced it will create a new ASX-listed company to hold Colonial’s assets in a deal that could be worth about A$4bn. This would free up capital that would likely exceed regulatory demands and leave CBA more focussed on retail and business banking.
At the time of the review into the asset management business the bank confirmed there were no plans to sell its financial planning and superannuation businesses.
The move to sell off the funds manager comes as banks are cutting their exposure to the wealth management sector as investors push banks to deploy their capital in the high-returning retail and business banking units.
The float is aiming to be concluded by the end of 2018.
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