Colonial First State Global Asset Management will work towards an initial public offering and listing on the Australian Securities Exchange following a strategic review from its parent bank.
Commonwealth Bank announced this afternoon it had completed the review of its global investment management business and determined it would pursue an IPO - a move which was flagged in September 2017.
"In making our assessment, we examined long-term Commonwealth Bank shareholder value and also considered the ability of CFSGAM to serve the interests of its clients, attract and retain key personnel and better grow its business," a CBA statement said.
"While CFSGAM has achieved significant growth, scale and diversification under the current ownership structure, the strategic review determined that an independent ownership model would provide greater benefits."
The IPO pursuit is expected to complete by the end of 2018, subject to market conditions and necessary approvals. In preparation for the potential listing, Commonwealth Bank and CFSGAM approached several candidates who agreed to join the investment manager's board as independent non-executive directors pursuant to the potential IPO.
Candidate directors include John Mulcahy (who would be appointed as chairman), Susan Doyle, James Millar, Gail Pemberton and Richard Wastcoat.
CBA said additional directors may be approached to join the board ahead of the potential IPO. It said Mark Lazberger will continue in his role as CFSGAM chief executive and would be appointed as an executive director of the board.
CFSGAM, known as First State Investments outside of Australia, has offices in Europe, the US and Asia Pacific. As at 31 December 2017, CFSGAM managed $219 billion of assets on behalf of institutional investors, pension funds, wholesale distributors, investment platforms, financial advisers and their clients worldwide.