Colonial First State Investments is looking to streamline its enlarged retail fund range following t...
Colonial First State Investments is looking to streamline its enlarged retail fund range following the acquisition of Stewart Ivory, which is scheduled to go ahead on 13 March.
Both Stewart Ivory and Colonial describe themselves as running active bottom up investment styles with a strong research driven process. The two fund ranges overlap in US, Far East, UK, emerging markets, European and Japan portfolios. While Colonial has an Oeic the Stewart Ivory range consists of unit trusts. Peter Polson, managing director at Colonial First State Investments Group, said: "Where there are two funds investing in the same area and holding the same objective, it would make sense to merge them but we would have to make sure this is an orderly process and investors are not disadvantaged."
The issue of fund rationalisation is to be looked at by a team comprising both Colonial and Stewart Ivory employees. Other issues include marketing, future branding and having two offices, one in Edinburgh and one in London. Polson would not comment on whether there would be job losses.
The new company would be called Colonial Stewart Ivory and the combination of Colonial First State's £5.56bn in total funds under management and Stewart Ivory's £3bn will bring the new company to around £8.5bn.
Polson said: "Stewart Ivory is an established fund manager and will provide a strong UK base for Colonial to grow its international funds."
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