Changes to the FirstChoice Wholesale Multi-Manager Funds
This update outlines changes to the FirstChoice Wholesale Multi-Manager Funds PDS dated 3 February 2020 issued by Colonial First State Investments Limited ABN 98 002 348 352 AFS Licence 232468. You should read this update together with the original PDS dated 3 February 2020. You can obtain a copy of the PDS, free of charge, by calling us on 13 13 36.
As part of our ongoing management of the range of Colonial First State Multi-Manager funds, we have made a number of changes to some of the funds.
Asset Allocation
In order to refine the risk and return outcomes of the funds, we have made the following adjustments to the asset allocations of some of the funds, effective 8 June 2020.
FirstChoice Wholesale Conservative Fund
| Asset Class | Previous Allocation % |
New Allocation % |
|---|---|---|
Australian shares |
9.5 |
9.5 |
| Global shares | 7.0 | 7.0 |
| Global shares – hedged | 3.5 | 3.5 |
| Emerging market shares | 1.0 | 1.0 |
| Alternatives | 4.0 | 6.0 |
| Global property securities | 2.5 | 3.0 |
| Global infrastructure securities | 2.5 | 3.0 |
| Fixed interest | 30.0 | 30.0 |
| Cash and defensive alternatives | 40.0 | 37.0 |
FirstChoice Wholesale Diversified Fund
| Asset Class | Previous Allocation % |
New Allocation % |
|---|---|---|
Australian shares |
16.0 |
16.5 |
| Global shares | 12.5 |
13.0 |
| Global shares – hedged | 5.5 |
7.0 |
| Emerging market shares | 2.0 |
2.5 |
| Alternatives | 6.0 |
6.0 |
| Global property securities | 4.0 |
4.0 |
| Global infrastructure securities | 4.0 |
4.0 |
| Fixed interest | 25.0 |
24.0 |
| Cash and defensive alternatives | 25.0 |
23.0 |
FirstChoice Wholesale Moderate Fund
| Asset Class | Previous Allocation % |
New Allocation % |
|---|---|---|
Australian shares |
20.0 |
20.0 |
| Global shares | 15.0 |
15.0 |
| Global shares – hedged | 7.5 |
9.0 |
| Emerging market shares | 2.5 |
3.0 |
| Alternatives | 6.0 |
6.0 |
| Global property securities | 4.5 |
5.0 |
| Global infrastructure securities | 4.5 |
5.0 |
| Fixed interest | 25.0 |
22.0 |
| Cash and defensive alternatives | 15.0 |
15.0 |
FirstChoice Wholesale Balanced Fund
| Asset Class | Previous Allocation % |
New Allocation % |
|---|---|---|
Australian shares |
23.0 |
23.0 |
| Global shares | 17.0 |
17.0 |
| Global shares – hedged | 9.0 |
10.5 |
| Emerging market shares | 3.0 |
3.5 |
| Alternatives | 7.0 |
8.0 |
| Global property securities | 5.5 |
6.0 |
| Global infrastructure securities | 5.5 |
6.0 |
| Fixed interest | 22.0 |
20.0 |
| Cash | 8.0 |
6.0 |
FirstChoice Wholesale Growth Fund
| Asset Class | Previous Allocation % |
New Allocation % |
|---|---|---|
Australian shares |
27.0 |
27.0 |
| Global shares | 20.0 |
20.0 |
| Global shares – hedged | 10.5 |
11.0 |
| Emerging market shares | 3.5 |
4.0 |
| Alternatives | 7.5 |
8.0 |
| Global property securities | 5.5 |
7.0 |
| Global infrastructure securities | 6.0 |
7.0 |
| Fixed interest | 17.0 |
16.0 |
| Cash | 3.0 |
0.0 |
Changes to composite benchmarks
The composite benchmark for each of the above funds has been adjusted to reflect these changes.
FirstChoice Wholesale Conservative Fund
30.0% Bloomberg AusBond Bank Bill Index, 15.0% FTSE World Broad Investment Grade Index (AUD hedged), 15.0% Bloomberg AusBond Composite 0+Yr Index, 3.0% FTSE EPRA/NAREIT Developed Rental Index (AUD hedged), 3.0% FTSE Developed Core Infrastructure 50/50 Index (AUD hedged), 9.5% S&P/ASX 300 Accumulation Index, 6.0% MSCI All Country World Index, 3.5% MSCI All Country World Index (AUD hedged), 1.0% MSCI Emerging Markets Index, 13.0% RBA cash rate, 1.0% MSCI World Small Cap Index.
FirstChoice Wholesale Diversified Fund
18.0% Bloomberg AusBond Bank Bill Index, 12.0% FTSE World Broad Investment Grade Index (AUD hedged), 12.0% Bloomberg AusBond Composite 0+Yr Index, 4.0% FTSE EPRA/NAREIT Developed Rental Index (AUD hedged), 4.0% FTSE Developed Core Infrastructure 50/50 Index (AUD hedged), 16.5% S&P/ASX 300 Accumulation Index, 11.0% MSCI All Country World Index, 7.0% MSCI All Country World Index (AUD hedged), 2.5% MSCI Emerging Markets Index, 11.0% RBA cash rate, 2.0% MSCI World Small Cap Index.
FirstChoice Wholesale Moderate Fund
12.0% Bloomberg AusBond Bank Bill Index, 11.0% FTSE World Broad Investment Grade Index (AUD hedged), 11.0% Bloomberg AusBond Composite 0+Yr Index, 5.0% FTSE EPRA/NAREIT Developed Rental Index (AUD hedged), 5.0% FTSE Developed Core Infrastructure 50/50 Index (AUD hedged), 20.0% S&P/ASX 300 Accumulation Index, 12.5% MSCI All Country World Index, 9.0% MSCI All Country World Index (AUD hedged), 3.0% MSCI Emerging Markets Index, 9.0% RBA cash rate, 2.5% MSCI World Small Cap Index.
FirstChoice Wholesale Balanced Fund
6.0% Bloomberg AusBond Bank Bill Index, 10.0% FTSE World Broad Investment Grade Index (AUD hedged), 10.0% Bloomberg AusBond Composite 0+Yr Index, 6.0% FTSE EPRA/NAREIT Developed Rental Index (AUD hedged), 6.0% FTSE Developed Core Infrastructure 50/50 Index (AUD hedged), 22.0% S&P/ASX 300 Accumulation Index, 1.0% S&P/ASX Small Ordinaries Accumulation Index, 14.0% MSCI All Country World Index, 10.5% MSCI All Country World Index (AUD hedged), 3.5% MSCI Emerging Markets Index, 8.0% RBA cash rate, 3.0% MSCI World Small Cap Index.
FirstChoice Wholesale Growth Fund
8.0% FTSE World Broad Investment Grade Index (AUD hedged), 8.0% Bloomberg AusBond Composite 0+Yr Index, 7.0% FTSE EPRA/NAREIT Developed Rental Index (AUD hedged), 7.0% FTSE Developed Core Infrastructure 50/50 Index (AUD hedged), 25.5% S&P/ASX 300 Accumulation Index, 1.5% S&P/ASX Small Ordinaries Index, 16.5% MSCI All Country World Index, 11.0% MSCI All Country World Index (AUD hedged), 4.0% MSCI Emerging Markets Index, 8.0% RBA cash rate, 3.5% MSCI World Small Cap Index.
Changes to underlying investment managers
The following investment options had manager allocation changes:
| Investment option |
Previous manager allocations |
New manager allocations |
Effective Date | ||
|---|---|---|---|---|---|
FirstChoice Wholesale Alternatives |
Aspect Capital |
15.0% | Aspect Capital |
15.0% | 2 March 2020 |
| Dymon Asia |
10.0% | Dymon Asia |
7.0% | ||
| Amundi |
15.0% | Amundi |
8.0% | ||
| AQR |
20.0% | AQR |
20.0% | ||
| H2O Asset Management |
14.0% | H2O Asset Management |
15.0% | ||
| Wellington Management |
16.0% | Wellington Management |
20.0% | ||
| Franklin Templeton |
10.0% | Oaktree Capital |
15.0% | ||
| FirstChoice Wholesale Fixed Interest |
Colonial First State (Indexed Australian Bonds)1 |
26.5% | Colonial First State (Indexed Australian Bonds)1 |
28.0% | 3 February 2020 |
| Loomis Sayles |
10.0% | Loomis Sayles |
10.0% | ||
| Franklin Templeton | 11.0% | Franklin Templeton | 12.5% | ||
| Colchester | 11.5% | Colchester | 11.5% | ||
| Wellington Management | 17.0% | Wellington Management | 19.0% | ||
| H2O Asset Management | 8.5% | H2O Asset Management | 9.5% | ||
| Morgan Stanley | 7.5% | Morgan Stanley | 9.5% | ||
| Colonial First State Global Asset Management1 | 8.0% | ||||
| FirstChoice Wholesale Global Infrastructure Securities | Lazard | 30.0% | Lazard | 30.0% | 18 March 2020 |
| Cohen & Steers | 30.0% | Cohen & Steers | 30.0% | ||
| Colonial First State Global Asset Management1 | 10.0% | Colonial First State Global Asset Management | 10.0% | ||
| Maple Brown Abbott | 30.0% | Atlas | 30.0% | ||
1 This allocation is managed by Colonial First State Global Asset Management. In September 2019 the investment manager changed its name to First Sentier Investors.
Disclaimer
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.