THIS SITE IS INTENDED FOR ADVISER USE ONLY

By clicking through to the Investments or Platforms site below you confirm that you are a licensed adviser operating under an Australian Financial Services License.

Investment Option

Investment Option

Menu Changes

Menu Changes

 

We’ve made a number of changes and enhancements to the FirstChoice investment options menu.

New investment options


  • NEW LOW-COST INDEX OPTIONS ON FIRSTCHOICE WHOLESALE
  • The option allocates 70% of investments to defensive assets such as fixed interest and cash to provide the portfolio with relatively stable returns. The fixed interest component is managed on a traditional index basis while the cash component may include money market securities, bank deposits and annuities. 30% of the portfolio is allocated to growth assets such as shares, property and infrastructure securities to provide potential for capital growth. The growth assets are managed using market capitalization indices. The portfolio aims to hedge currency risk, except for a part of the allocation to global shares.

  • The option allocates 50% of investments to growth assets such as shares, property and infrastructure securities to provide potential for capital growth. The growth assets are managed using market capitalization indices. 50% of the portfolio is allocated to defensive assets such as fixed interest and cash to provide the portfolio with relatively stable returns. The fixed interest component is managed on a traditional index basis while the cash component may include money market securities, bank deposits and annuities. The portfolio aims to hedge currency risk, except for a part of the allocation to global shares.

  • The option allocates 80% of investments to growth assets such as shares, property and infrastructure securities to provide potential for capital growth. The growth assets are managed using market capitalization indices. 20% of the portfolio is allocated to defensive assets such as fixed interest and cash to provide the portfolio with relatively stable returns. The fixed interest component is managed on a traditional index basis while the cash component may include money market securities, bank deposits and annuities. The portfolio aims to hedge currency risk, except for a part of the allocation to global shares.

  • Stewart Investors Worldwide Sustainability is a benchmark unaware strategy that will seek to invest in a diverse portfolio of equity securities which are listed, traded or dealt in on any of the regulated markets worldwide. The option may have exposure to developed or emerging markets whilst maintaining its geographic diversity. The investment process will take account of sustainability themes and issues and requires positive engagement with companies in respect of these. The option does not hedge currency risk

Investment Option Name Changes


  • Aberdeen Asset Management and Standard Life Investments merged in September 2018. As a result, the marketing name of the investment options will be updated to reflect the company’s new marketing name.

  • Blackrock have rebranded their scientific series resulting in a name change of the underlying unit trust of the BlackRock Scientific Australian Equity fund. There is no change to investment strategy or process as a result of the name change.

  • The name and strategy wording of the investment option are changing to better reflect the underlying securities of the fund. There is no change in investment process, the investment option will continue to invest in cash and money market securities which includes asset backed securities.

Options closing to new investors


  • Following a review, Acadian Defensive Income in FirstChoice Investments will be closed to new investors due to its low investment levels and consequently due to its status as a closely held trust.

  • Colonial First State Multi-Asset Real Return will be closing to new investors whilst the strategy is being reviewed as a go forward option due to the size of the fund.

  • FirstChoice Alternatives will be closing to new investors whilst the strategy is being reviewed due to a period of under performance.

  • SG Hiscock Property Securities will be closing to new investors whilst the strategy is being reviewed due to its fund size and a period of underperformance.

Management Fee Changes


Performance-related fee changes


ASSET ALLOCATION CHANGES


  • Janus Henderson Global Natural Resources is a long only, actively managed natural resources equity strategy which invests in global mining, energy and agricultural companies. The strategy will hold 50-70 high quality companies diversified by commodity, size, maturity and investment strategy.

CHANGE OF STRATEGY


  • Using a quantitative approach, Acadian incorporates a range of ESG criteria including limiting exposure to stocks that receive significant revenue from activities not deemed socially responsible (e.g. gambling and weapons) and stocks involved in notable ESG controversies, for example human rights abuses or corrupt business practices. Acadian also targets a reduction in carbon intensity of the portfolio relative to that of the broad global equity index (MSCI World ex Australia). The option does not hedge currency risk.

  • The option uses Acadian’s systematic fundamental analysis of stocks across a universe of global developed market equities and also seeks to exploit individual security risk mispricing. The option will generally maintain a long exposure of 195% and a short equity exposure of 135%, resulting in it generally holding lower risk, fundamentally attractive companies and short (selling) higher risk, fundamentally unattractive companies. The option targets being neutral to equity market movements and aims to hedge currency risk.

  • Antipodes seeks to take advantage of the market’s tendency for irrational extrapolation, identify investments that offer a high margin of safety and build high conviction portfolios with a capital preservation focus. The strategy typically invests in a select number of attractively valued companies listed on global share markets (usually a minimum of 30 long holdings) and will typically have a net equity exposure of 50–100%.

    Equity shorts and currency positions may be used where Antipodes sees attractive opportunities and also to offset specific unwanted portfolio risks and provide some protection from tail risk. Derivatives may also be used to amplify high conviction ideas.

     

  • The strategy uses proprietary models and advanced data analytics to unlock opportunities. The option’s systematic approach to investment management looks to produce repeatable and consistent results in a risk aware framework.

    The strategy aims to deliver differentiated returns and also takes into consideration ESG insights when assessing companies. At a similar level of risk to the benchmark, the goal is to deliver additional risk control returns as well as broad market exposure.

     

     

  • The option's strategy has an emphasis on companies that provide long term capital growth and growing dividends with tax-effective income. The strategy is based on the belief that, over the medium-to-long term, stock prices are driven by the ability of management to generate excess returns over their cost of capital in their chosen industry. The option generally invests in high quality companies with strong balance sheets and earnings. The option predominantly invests in Australian companies and therefore does not hedge currency risk.

  • The option's strategy is to invest in high quality money market securities (including asset backed securities), with predominantly short maturities, to achieve a very stable income stream. The option invests in assets that offer value-for-risk by taking into account economic analysis and market trends. Derivatives may be used for risk management

  • The option pursues attractive total returns with an above average level of income by investing in a diversified portfolio of global companies with strong and growing free cash flow. Companies in the portfolio possess managements that focus on creating value for shareholders through consistent and rational capital allocation policies with an emphasis on cash dividends, share repurchases and debt reduction – the key components of shareholder yield. The portfolio generally holds between 90 and 120 stocks from equity markets worldwide (including emerging markets), with risk controls to diversify the sources of shareholder yield and minimise volatility.

    The option does not hedge currency risk. 

     

  • The option predominantly provides exposure to a wide range of domestic and global investment grade floating and fixed rate instruments, asset-backed securities, and cash. The option may also have opportunistic exposure to other fixed income sectors and instruments such as, high yield and emerging markets debt as well as other fixed income instruments (such as hybrid securities). Interest rate risk will generally be hedged through the use of derivatives such as swaps and futures.

    The option is generally hedged to Australian dollars, however exposure to emerging markets debt issued in the local currency of the debt will generally be unhedged. Small active currency positions may also be taken, for example when there are opportunities to add value or hedge risks in the portfolio.

     

  • The option is an actively managed diversified portfolio that invests in Australian and global shares, Australian and global listed property securities, Australian and global fixed interest, cash and alternatives. The option has a higher weighting towards growth assets than to defensive assets. This option may hedge a portion of its currency exposure. Derivatives may be used in managing the option.

  • The option is an actively managed portfolio of predominantly Australian shares that offer potential for long term capital growth and tax-effective income. The manager’s investment process for Australian shares is based on its core investment style and aims to add value through active stock selection and fundamental company research.

    The manager’s core investment style is to select stocks based on its assessment of their long-term worth and ability to outperform the market, without being restricted by a growth or value bias. The manager’s fundamental company research focuses on valuation, franchise, management quality and risk factors (both financial and non-financial risk). 

     

  • The option offers the potential for long-term capital growth and diversification across a broad range of companies, industries and countries. While most investments will be located in the United States, Europe and Japan, it can invest in any market in the world which offers attractive opportunities. Generally, the international share exposure will not be hedged to the Australian dollar. Derivatives may be used to reduce risk and can act as a hedge against adverse movements in a particular market and/or in the underlying assets. Derivatives can also be used to gain exposure to assets and markets.

  • Realindex forms a universe of companies listed on the Australian Securities Exchange based on accounting measures. Factors such as quality, near-term value and momentum are applied to form a final portfolio of companies.

    The resulting portfolio has a value tilt relative to the benchmark and provides the benefits of being lower in cost, lower turnover and highly diversified compared to traditional active investment strategies. By weighting the portfolio based on accounting measures and factors such as quality, value and momentum, Realindex aims to generate higher returns versus the benchmark over the long term.

     

  • Realindex forms a universe of companies listed on the Australian Securities Exchange that are outside both the ASX 100 and the 100 largest companies based on accounting measures. Factors such as quality, near-term value and momentum are applied to form a final portfolio of companies.

    The resulting portfolio has a value tilt relative to the benchmark and provides the benefits of being lower in cost, lower turnover and highly diversified compared to traditional active investment strategies. By weighting the portfolio based on accounting measures and factors such as quality, value and momentum, Realindex aims to generate higher returns versus the benchmark over the long term.

     

  • Realindex forms a universe of companies based on accounting measures. Factors such as quality, near-term value and momentum are applied to form a final portfolio of companies.

    The resulting portfolio has a value tilt relative to the benchmark and provides the benefits of being lower in cost, lower turnover and highly diversified compared to traditional active investment strategies. By weighting the portfolio based on accounting measures and factors such as quality, value and momentum, Realindex aims to generate higher returns versus the benchmark over the long term. This option does not hedge currency risk.

     

  • Realindex forms a universe of companies based on accounting measures. Factors such as quality, near-term value and momentum are applied to form a final portfolio of companies.

    The resulting portfolio has a value tilt relative to the benchmark and provides the benefits of being lower in cost, lower turnover and highly diversified compared to traditional active investment strategies. By weighting the portfolio based on accounting measures and factors such as quality, value and momentum, Realindex aims to generate higher returns versus the benchmark over the long term. The option does not hedge currency risk.

     

  • Realindex forms a universe of companies based on accounting measures. Factors such as quality, near-term value and momentum are applied to form a final portfolio of companies.

    The resulting portfolio has a value tilt relative to the benchmark and provides the benefits of being lower in cost, lower turnover and highly diversified compared to traditional active investment strategies. By weighting the portfolio based on accounting measures and factors such as quality, value and momentum, Realindex aims to generate higher returns versus the benchmark over the long term.

    This fund aims to hedge currency risk.

     

CHANGE OF OBJECTIVE


  • To combine long-term capital growth with tax-effective income by targeting Australian growth companies with a high level of franked dividends. The option aims to outperform the S&P/ASX 300 Accumulation Index over rolling three year periods before fees and taxes.

  • To deliver an investment return of 4.5% pa above inflation over rolling five-year periods before fees and taxes. Inflation is defined as the Australian Consumer Price Index (CPI) Trimmed Mean Index, as published by the Australian Bureau of Statistics.

  • To provide long-term capital growth and income through investment in a diversified portfolio with an emphasis on Australian and international share investments. The option aims to outperform CPI + 5% pa (before fees and taxes) over at least five-year periods. The option aims to outperform its composite benchmark over rolling three-year periods before fees and taxes.

  • To provide moderate growth over the medium term and income through investment in a diversified portfolio with an emphasis on cash and fixed income securities. The option aims to outperform CPI + 3.5% pa (before fees and taxes) over at least two-year periods and to outperform its composite benchmark over rolling three-year periods before fees and taxes.

  • To provide long-term capital growth and regular income through investment in a diversified portfolio of growth and income assets. The option aims to outperform CPI + 4.5% pa (before fees and taxes) over at least three-year periods and to outperform its composite benchmark over rolling three-year periods before fees and taxes.

  • The option utilises PIMCO’s core fixed interest strategy of seeking strong, consistent investment returns while at the same time moderating the volatility of returns relative to the benchmark. The option aims to outperform the Bloomberg Barclays Global Aggregate Index hedged to Australian dollars over rolling three-year periods before fees and taxes.

  • To provide investors with a total return in excess of the composite benchmark (Bloomberg AusBond Composite 0+Yr Index (50%) and Bloomberg Barclays Global Aggregate Index, hedged to Australian dollars (50%)), over rolling three-year periods before fees and taxes.

Buy/Sell Spread Changes


COMPOSITE BENCHMARK CHANGES


DISTRIBUTION FREQUENCY CHANGES


Portfolio Diversification

The diversification guidelines are reviewed on an annual basis. Following this review, it was determined to change the diversification guidelines for the below investment categories:
 

  • Australian share – small companies: from 50% to 30%
  • Global share – emerging markets: from 50% to 30% 

 

New investment category - Enhanced Cash

We have introduced an additional investment category called Enhanced Cash. The Colonial First State Strategic Cash option will now form part of the Enhanced Cash investment category.

Disclaimer

Adviser Use Only

Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (Colonial First State) is the issuer of FirstChoice Personal Super, FirstChoice Wholesale Personal Super, FirstChoice Pension, FirstChoice Wholesale Pension, FirstChoice Employer Super offered from the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557. It also issues interests in the Rollover & Superannuation Fund (ROSCO) and Personal Pension Plan (PPP) offered from the Colonial First State Rollover & Superannuation Fund ABN 88 854 638 840. Colonial First State also issues interests in products made available under FirstChoice Investments and FirstChoice Wholesale Investments. This is based on the understanding of current regulatory requirements and laws as at 14 March 2019. While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no person including Colonial First State or any member of the Commonwealth Bank group of companies, accepts responsibility for any loss suffered by any person arising from reliance on this information. This document provides information for the adviser only and is not to be handed on to any investor. It does not take into account any person’s individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) before making any recommendations to a client. Clients should read the PDS and FSG before making an investment decision and consider talking to a financial adviser. The PDS and FSG can be obtained from or by calling us on 13 18 36.

Contact us

The content displayed on this page is intended for financial advisers only