On 4 October 2016, the investment manager, name and features of the Goldman Sachs Wholesale Income Plus option changed. The option is now managed by BT Investment Management and named the BT Wholesale Monthly Income Plus option.
Why the change?
Goldman Sachs Asset Management Australia, the investment manager of the Goldman Sachs Wholesale Income Plus option, announced that they were reviewing their Australian asset management business which was likely to result in a decision to sell that business.
We undertook a review of the investment option and decided to replace the investment manager. The new investment manager of the option, BT Investment Management, will implement a comparable investment objective and strategy for the option.
The table below provides a summary of the changes:
|Investment option summary|
|Previous name: Goldman Sachs Wholesale Income Plus||New name: BT Wholesale Monthly Income Plus|
|Previous objective||New objective|
|To provide regular income and to achieve medium-term capital growth by investing in cash, money market products, domestic fixed interest and a range of high yielding investments including domestic hybrid investments, property, infrastructure and utilities securities and international fixed interest assets. This option aims to outperform the Bloomberg AusBond Bank Bill Index over rolling three year periods before fees and taxes.||To provide a return (before fees and taxes) that exceeds the Reserve Bank of Australia cash rate over rolling three year periods while allowing for some capital growth to reduce the impact of inflation.|
|Previous strategy||New strategy|
|The option’s investment process aims to benefit investors by providing diversified sources of income and rigorous risk management through tactical asset allocation. The process can be broadly divided into three steps – strategic asset allocation, active asset allocation and risk management, and portfolio construction. Emphasis is given to maximising income paid by the option, whilst targeting volatility that is in line with bond markets. The option aims to hedge currency risk.||This option is designed for investors who want the potential for regular income and some long term capital growth. The option’s strategy is to invest in a number of income generating strategies across the fixed interest, Australian shares and cash asset classes. BT investment management’s investment process is designed to provide a flexible approach to asset allocation. This is aimed at preserving capital and minimising the occurrence of adverse income outcomes. 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. The option does not hedge currency risk.|
|Previous asset allocation||New asset allocation|
|Property, infrastructure and utilities securities||0 ‑ 25%||15%||Cash||0 ‑ 50%||N/A|
|Australian fixed interest||0 ‑ 50%||20%||Fixed Interest||20 ‑ 100%||N/A|
|Hybrids||0 ‑ 40%||15%||Australian shares||0 ‑ 30%||N/A|
|Global high yield||0 ‑ 25%||10%|
|Cash||5 ‑ 100%||40%|
The BT Wholesale Monthly Income Plus option will be available to both existing investors and any new investors.
You don’t need to take any action as a result of this change
However, if you do not wish to be invested in this option, you can switch at any time. The total management costs and transaction costs per transaction of the option will remain the same.
If you would like more information about this option, including how to switch from it, please refer to the FirstChoice Supplementary PDS, or call us on 13 13 36, Monday to Friday, 8am to 7pm Sydney time.
Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the issuer of super, pension and investment products. This document may include general advice but does not take into account your individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. A PDS for Colonial First State’s products are available at colonialfirststate.com.au or by calling us on 13 13 36.