Zurich Investments Wholesale Global Thematic Share was closed to new investors in May 2018. The option has experienced periods of underperformance that has resulted in the option being unable to meet its investment objective.
From 22 October 2018, the investment manager, name, strategy and investment parameters changed.
The option is now managed by Baillie Gifford and named Baillie Gifford Wholesale Long Term Global Growth.
The change has been implemented across the following products:
- FirstChoice Wholesale Personal Super
- FirstChoice Personal Super
- FirstChoice Wholesale Pension
- FirstChoice Pension
- FirstChoice Wholesale Investments
- FirstChoice Investments
The option, which was closed to new investors, has been re-opened.
The option will continue to invest in international shares using Baillie Gifford’s proven style and focus on generating strong long-term growth.
Here is a summary of the changes:
|Investment option summary|
|Previous option name: Zurich Investments Wholesale
Global Thematic Share
|New option name: Baillie Gifford Wholesale
Long Term Global Growth
|Previous objective||New objective|
|To provide long-term capital growth, with the benefits of global diversification. The option aims to outperform the MSCI World (ex Australia) Index over rolling three year periods before fees and taxes.
||To outperform the MSCI All Country World Index over rolling five year periods before fees and taxes.
|Previous strategy||New strategy|
|The option generally invests in a broad selection of securities listed on foreign stock exchanges. The option may hedge up to 40% of the option's exposure to international currency back to Australian dollars.
||The option is a purely stock-driven, unconstrained global equity strategy focused on investing in exceptional growth companies. This approach is expressly long term, with Baillie Gifford holding a belief that investing in companies with the scope to grow to multiples of their current size has the potential to transform the returns for investors over time. The option does not hedge currency risk.|
|Previous benchmark||New benchmark|
|MSCI World ex Australia Net Index||MSCI All Country World Index|
|Previous asset allocation||New asset allocation|
|Cash||0 ‑ 10%||0%||Cash||0 ‑ 5%||0%|
|Global shares||90 ‑ 100%||100%||Global shares||95 ‑ 100%||100%|
|Standard risk measure: 7||Standard risk measure: 7|
|Suggested timeframe: At least 7 years||Suggested timeframe: At least 7 years|
About Baillie Gifford
Baillie Gifford is an independent investment management partnership established over 100 years ago that manages over $310bn globally (as at December 2017). The firm is based in Edinburgh and wholly owned by the current partners, who all work within the firm. As stewards of Baillie Gifford’s long-term vision, the partners are free to manage the firm without the short-term demands that external shareholders can bring. Baillie Gifford are independent practitioners of long-term, active, growth investing - with a dedication to clients’ interest above all else.
Investment Philosophy & Process
Baillie Gifford believe that returns from equity portfolios are determined less by the occasional (and inevitable) mistakes made in individual investments than by exposure to very successful investments.
Ballie Gifford take a long-term approach to stock selection. Investment performance is judged over five years or more to provide adequate evidence of investment skill. Baillie Gifford take a global approach to stock selection and portfolio construction is purely stock driven, so no reference is made to benchmark indices in the investment process. Portfolio holding sizes are based purely on the associated level of conviction. Baillie Gifford also believe that the portfolio should be comparatively concentrated.
Baillie Gifford believes that long term success in equity investing requires risk taking and ambition, not caution and downside risk protection. Baillie Gifford have a strong conviction that the long term global growth strategy should be concentrated and focused on the long term. The strategy will have periods of poor performance and returns are likely to vary considerably around benchmark indices over short-term time periods and is therefore unlikely to be suitable for those with a low tolerance for short-term volatility or performance horizons.
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.