CFS separates from CBA with $430m to invest

Mike Taylor

Managing Editor/Publisher, Financial Newswire

1 December 2021

Colonial First State (CFS) has declared itself a standalone business now formally separated from the Commonwealth Bank.

The group announced today that the Commonwealth Bank had completed the sale of its 55% stake in CFS to global investment firm CFS, with the underlying message from the firm being that the transaction “strengthens CFS’s position as one of Australia’s leading retail superannuation and investments platforms.

“CFS is now looking to invest more than $430 million in its business over the next four years,” the announcement said.

“The investment program is a strong endorsement of the CFS brand, the quality of the platform and service offering, and the long-term sustainability and growth prospects of the business. The investment will focus on:

• Modernising all core technology systems to deliver market leading superannuation and investment services to members and their advisers;
• Transforming the service experience, including an accelerated investment in digital channels;
• Expanding products and services available to members and advisers; and
• Making CFS easier and more efficient to do business with.

Commenting on the formalisation of the separate, Rob Coombe, Executive Chairman of Colonial First State, said: “Today marks the first day of Colonial First State as a standalone company and with that comes a far more agile operating model. We welcome KKR’s support as an endorsement of our business and our people, which provides us with significant confidence in our plans to achieve improved outcomes for our members’ superannuation and retirement”.

Scott Bookmyer, Partner and Head of KKR Australia said: “Colonial First State is one of the most longstanding and respected superannuation and investment businesses in Australia. We’re delighted to invest in Colonial First State’s ongoing success alongside CBA, and together, we look to build on the strength of Colonial First State’s brand, platform and reputation to deliver outstanding outcomes for its members and advisers.