Changes in ownership of the underlying funds of First State funds

09 April 2019

  • R30 First State Asian Equity Plus
  • R51 First State China Growth
  • R31 First State Greater China Growth

Friends Provident International Limited (“Friends Provident International”) has been notified by First State Global Umbrella Fund plc (“The Company”) of an ultimate ownership change of the underlying funds into which the above named mirror funds invest. This change will come into effect from 08 May 2019, or such later date as may be notified by the Company (the “Effective Date”).

Below are the key areas for your attention which we have extracted from the shareholder circular of the underlying funds of the above named mirror funds.

Change to the ultimate holding company of the investment manager and sub-investment managers of the Company and the underlying funds

Currently, the ultimate holding company of the investment manager of the Company and the underlying funds (i.e. First State Investments (Hong Kong) Limited (the “Investment Manager”) and its sub-investment managers:-

  • First State Investments (Singapore) (“FSIS”)
  • First State Investment Management (UK) Limited (“FSIM UK”)
  • First State Investments (US) LLC (“FSI US”)
  • Colonial First State Asset Management (Australia) Limited (“CFSAMA”); and
  • Colonial First State Managed Infrastructure Limited (“CFSMIL”),

(together and collectively, the “Sub-Investment Managers”) is Commonwealth Bank of Australia (“CBA”). The investment manager, FSIS, FSIM UK, FSI US, CFSAMA and CFSMIL, amongst other entities, belong to the CBA’s global asset management business known as Colonial First State Asset Management (“CFSGAM”).

As from the Effective Date, the ultimate holding company of the investment manager and the sub-investment managers of the underlying funds will change from CBA to Mitsubishi UFJ Financial Group, Inc. (“MUFG”) (the “Change”).

Background of the Change

The Change is due to the sale by CBA and its wholly-owned subsidiary Colonial First State Group Limited (“CFSG”) of 100% of the shareholding in nine wholly-owned subsidiaries of CFSG, which collectively with their subsidiaries (including the investment manager and the sub-investment managers of the underlying funds) represent the global asset management business of CFSGAM, to Mitsubishi UFJ Trust and Banking Corporation (“MUTB”) (the “Transaction”). Upon completion of the Transaction, MUFG, being the parent company of MUTB, will become the ultimate holding company of CFSGAM. The Transaction is expected to close on the Effective Date.

Rationale for the Transaction

The Transaction is part of MUFG’s business initiative to become a major player in the global asset management market through enhancing its asset management capabilities.

Impact of the Change

Please note that the Change will not result in:

  • any change in the fee level or costs in managing the Company and the underlying funds;
  • any impact on the features and risk profile of the underlying funds;
  • any change in the operation and/or manner in which the underlying funds are being managed; and
  • any impact which may materially prejudice the rights or interests of existing investors in the underlying funds.

Should you have any questions regarding these changes, please contact International Funds & Investments.