CFS Edge managed accounts menu expands with addition
of MST Financial’s Sandstone Income Portfolio

18 June 2025

Colonial First State (CFS) today announces the addition of the Sandstone Income Portfolio, managed by MST Financial, to the CFS Edge platform.

The portfolio offers professionally managed exposure to a diverse mix of credit and income assets with active oversight from MST Financial’s experienced team. The strategy supports advisers in transitioning clients from legacy hybrid holdings while also offering an entry point for those new to income investing.

“The Sandstone Income Portfolio is designed to provide a timely and strategic income solution for advisers and clients navigating the evolving fixed income landscape, particularly as the phase-out of traditional hybrid securities reshapes income investing in Australia,” said Frances Taylor, Executive Director of Managed Accounts at CFS.

“The team at MST Financial are well known as specialists in this space and we are delighted to be working with them,” added Ms Taylor.

As bank hybrids are gradually redeemed over the next seven years, replacement securities targeted for inclusion in the Sandstone Income Portfolio will offer an equivalent or increased level of credit quality and liquidity, avoiding directing investors towards more risky or illiquid credit-based assets. This will include bank subordinated debt and selective investment grade rated corporate notes.

“The Sandstone Income Portfolio is built with one objective, to help advisers and their clients manage the hybrid phase-out with confidence,” said Ms Taylor.

“We’re proud to partner with CFS to deliver this strategy, said Gerard Satur, CEO of MST Financial.

“Having industry veterans like Cameron Duncan and Steve Anagnos leading our income team provides us with the ability to leverage their deep experience to be able to construct a portfolio that is appropriate and ideally suited to investors seeking stable income with a high degree of capital preservation,” added Mr Satur.

The menu expansion takes the total number of managed accounts on CFS Edge to more than 170 (including seven international managed accounts) with over $17 billion invested in CFS managed accounts across the Edge and FirstChoice platforms from 59 portfolio managers.

The CFS FirstChoice managed accounts specialist portfolio menu has been expanded with the addition of Alpha Investment Management, the portfolio manager business for the Infocus Group.  The FirstChoice managed account specialist menu now has 13 portfolio managers and 90 portfolios to choose from.

CFS has also launched a new managed account reporting suite featuring monthly and quarterly reports, performance bulletins, and real-time updates which portfolio managers can use to keep advisers and their clients informed about important changes. Available now for CFS Edge Signature and Tailored managed accounts, this functionality will be extended to FirstChoice managed accounts later this year. 

Steven Reilly, Director External Communications, Colonial First State

steven.reilly@cfs.com.au