Money Management | Big Money Podcast
Scott Tully, General Manager of Investments at Colonial First State discusses the growing appetite for passive investing and some of the more sophisticated index funds that have begun to emerge.
Colonial First State
Overview
Colonial First State offers a range of Index Multi-Sector options. These options provide easy access to broad market exposure across major asset classes, while keeping fees low. Index investing does not seek to outperform the return of the index; the aim of an index fund is to provide a return that is the same as the return of the index before fees.
There are six Index Multi-Sector options, each investing in a range of asset classes:
- Colonial First State Index Conservative (30% growth, 70% defensive)
- Colonial First State Index Diversified (50% growth, 50% defensive)
- Colonial First State Index Moderate (60% growth, 40% defensive)
- Colonial First State Index Balanced (70% growth, 30% defensive)
- Colonial First State Index Growth (80% growth, 20% defensive)
- Colonial First State Index High Growth (100% growth)
Low fees
Provides market exposure with the potential for lower turnover and costs than traditional active investment approaches
Impressive Scale
Our index funds total over $15 billion on behalf of Colonial First State’s members
Stable and experienced team
Oversight from Colonial First State’s team of investment professionals, with stable management from the team’s inception
Fund facts
| Asset Mix | Profile & Commentary | Benchmark |
|---|---|---|
| 30% growth, 70% defensive | Colonial First State Index Conservative | 40.0% Bloomberg AusBond Bank Bill Index 18.0% Bloomberg AusBond Composite 0+Yr Index 12.0% FTSE World Government Bond Index (ex Australia) (AUD hedged) 3.0% FTSE EPRA/NAREIT Developed Rental Index (AUD hedged) 10.0% S&P/ASX 200 Accumulation Index 7.0% MSCI World ex Australia Net Index 7.0% MSCI World ex Australia Net Index AUD hedged |
| 50% growth, 50% defensive | Colonial First State Index Diversified | 20.0% Bloomberg AusBond Bank Bill Index 18.0% Bloomberg AusBond Composite 0+Yr Index 12.0% FTSE World Government Bond Index (ex Australia) (AUD hedged) 5.0% FTSE EPRA/NAREIT Developed Rental Index (AUD hedged) 5% FTSE Developed Core Infrastructure 50/50 Index (AUD hedged) 18.0% S&P/ASX 200 Accumulation Index 11.0% MSCI World ex Australia Net Index 11.0% MSCI World ex Australia Net Index AUD hedged |
| 60% growth, 40% defensive | Colonial First State Index Moderate |
13.0% Bloomberg AusBond Bank Bill Index 16.0% Bloomberg AusBond Composite 0+Yr Index 11.0% FTSE World Government Bond Index (ex Australia) (AUD hedged) 5.0% FTSE EPRA/NAREIT Developed Rental Index (AUD hedged) 5.0% FTSE Developed Core Infrastructure 50/50 Index (AUD hedged) 23.0% S&P/ASX 200 Accumulation Index 13.5% MSCI World ex Australia Net Index 13.5% MSCI World ex Aust Net Index AUD Hedged |
| 70% growth, 30% defensive | Colonial First State Index Balanced | 6.0% Bloomberg AusBond Bank Bill Index 14.0% Bloomberg AusBond Composite 0+Yr Index 10.0% FTSE World Government Bond Index (ex Australia) (AUD hedged) 6.0% FTSE EPRA/NAREIT Developed Rental Index (AUD hedged) 6.0% FTSE Developed Core Infrastructure 50/50 Index (AUD hedged) 26.0% S&P/ASX 200 Accumulation Index 16.0% MSCI World ex Australia Net Index 16.0% MSCI World ex Aust Net Index AUD Hedged |
| 80% growth, 20% defensive | Colonial First State Index Growth | 3.0% Bloomberg AusBond Bank Bill Index 9.0% Bloomberg AusBond Composite 0+Yr Index 8.0% FTSE World Government Bond Index (ex Australia) (AUD hedged) 7.0% FTSE EPRA/NAREIT Developed Rental Index (AUD hedged) 7.0% FTSE Developed Core Infrastructure 50/50 Index (AUD hedged) 30.0% S&P/ASX 200 Accumulation Index 18.0% MSCI World ex Australia Net Index 18.0% MSCI World ex Australia Net Index AUD hedged |
| 100% growth | Colonial First State Index High Growth | 10.0% FTSE EPRA/NAREIT Developed Rental Index (AUD hedged) 10.0% FTSE Developed Core Infrastructure 50/50 Index (AUD hedged) 36.0% S&P/ASX 200 Accumulation Index 22.0% MSCI World ex Australia Net Index 22.0% MSCI World ex Aust Net Index AUD Hedged |
Resources
Additional Information
Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) is the issuer of the FirstChoice range of super and pension products from the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557. CFSIL 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 the date of publication. 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 CFSIL, accepts responsibility for any loss suffered by any person arising from reliance on this information. This 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. The Target Market Determinations (TMD) for our financial products can be found at www.cfs.com.au/tmd and include a description of who a financial product is appropriate for. 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 www.cfs.com.au or by calling us on 13 18 36.
From time to time, CFSIL enters into alliance partnerships with dedicated and experienced investment specialists. Each alliance represents an agreement for CFSIL to provide third party distribution services within the Australian Financial Services intermediary market.