First State Investments is under strategic review by its owner, Commonwealth Bank of Australia.
The Sydney-based bank's money management business is known in Australia as Colonial First State Global Asset Management.
Options under consideration include an initial public offering, said a news release on the bank's website.
First State has A$219 billion ($175.2 billion) in assets under management.
"This review will consider long-term Commonwealth Bank shareholder value, including whether a separately listed CFSGAM would be better able to grow its business, serve the interests of its clients and attract and retain key personnel," said the release.
The firm runs strategies across equities, fixed income, alternatives and multiasset, and is known for taking a responsible investment approach.
The strategic review followed an announcement of the 100% sale of the bank's life insurance businesses in Australia and New Zealand to AIA Group.
Spokesmen for Commonwealth Bank of Australia could not be reached for comment.