The CFS Investments team has made some adjustments to the asset allocation of the CFS Enhanced Index series with the aim of improving investor outcomes.
The changes are:
1. Increasing the proportion of the global share allocation that is hedged against currency movements.
2. Switching a portion of the fixed interest allocation from global to Australian securities and introducing an allocation to global high yield funded from global credit.
3. Switching a portion of the global property securities allocation to global infrastructure securities.
4. Increasing the allocation to global emerging market shares within the global share allocation. For the High Growth option, one-third is funded from global shares and two-thirds from global property securities. The composite benchmark no longer includes the MSCI World Small Cap Index as part of the global shares benchmarking.
5. Increasing the allocation to Australian small companies within the Australian shares allocation. The composite benchmark no longer includes the S&P/ASX Small Ordinaries Index, with the Australian shares allocation now fully benchmarked against the S&P/ASX 300 Total Return Index.
This has a corresponding change to the composite benchmarks, as follows:
CFS Enhanced Index Conservative
Previous
New
Change
Cash
Bloomberg AusBond Bank Bill Index
20.00%
20.00%
No change
Australian fixed interest
Bloomberg AusBond Composite 0+ Yr Index
20.00%
24.00%
4.00%
Global fixed interest
Bloomberg Global Aggregate Corporate Index (AUD hedged)
10.00%
10.00%
No change
Global fixed interest
Bloomberg Global Aggregate Index (AUD hedged)
20.00%
16.00%
-4.00%
Global infrastructure securities
FTSE Developed Core Infrastructure 50/50 Net Index Hedged AUD
2.00%
3.00%
1.00%
Global property securities
FTSE EPRA/NAREIT Developed ex Australia Rental Index NTR (AUD hedged)
2.00%
1.00%
-1.00%
Global shares
MSCI All Country World ex Australia Net Index
7.00%
7.50%
0.50%
Global shares - hedged
MSCI All Country World ex Australia Net Index Hedged AUD
5.00%
5.50%
0.50%
Global shares – emerging markets
MSCI Emerging Markets Net Index
2.00%
3.00%
1.00%
Global shares – small companies
MSCI World Small Cap Index
2.00%
0.00%
-2.00%
Australian shares
S&P/ASX 300 Total Return Index
9.00%
10.00%
1.00%
Australian shares – small companies
S&P/ASX Small Ordinaries Index
1.00%
0.00%
-1.00%
Changes to the overall “Target” asset allocation as per the PDS:
- Global property securities – decrease from 2% to 1%
- Global infrastructure securities – increase from 2% to 3%
CFS Enhanced Index Diversified
Previous
New
Change
Cash
Bloomberg AusBond Bank Bill Index
13.00%
13.00%
No change
Australian fixed interest
Bloomberg AusBond Composite 0+ Yr Index
14.00%
18.00%
4.00%
Global fixed interest
Bloomberg Global Aggregate Corporate Index (AUD hedged)
9.00%
9.00%
No change
Global fixed interest
Bloomberg Global Aggregate Index (AUD hedged)
14.00%
10.00%
-4.00%
Global infrastructure securities
FTSE Developed Core Infrastructure 50/50 Net Index Hedged AUD
3.00%
4.00%
1.00%
Global property securities
FTSE EPRA/NAREIT Developed ex Australia Rental Index NTR (AUD hedged)
3.00%
2.00%
-1.00%
Global shares
MSCI All Country World ex Australia Net Index
13.00%
13.50%
0.50%
Global shares - hedged
MSCI All Country World ex Australia Net Index Hedged AUD
8.50%
9.50%
1.00%
Global shares – emerging markets
MSCI Emerging Markets Net Index
3.00%
4.00%
1.00%
Global shares – small companies
MSCI World Small Cap Index
2.50%
0.00%
-2.50%
Australian shares
S&P/ASX 300 Total Return Index
15.50%
17.00%
1.50%
Australian shares – small companies
S&P/ASX Small Ordinaries Index
1.50%
0.00%
-1.50%
Changes to the overall “Target” asset allocation as per the PDS:
- Global property securities – decrease from 3% to 2%
- Global infrastructure securities – increase from 3% to 4%
CFS Enhanced Index Moderate
Previous
New
Change
Cash
Bloomberg AusBond Bank Bill Index
10.00%
10.00%
No change
Australian fixed interest
Bloomberg AusBond Composite 0+ Yr Index
11.00%
14.00%
3.00%
Global fixed interest
Bloomberg Global Aggregate Corporate Index (AUD hedged)
8.00%
8.00%
No change
Global fixed interest
Bloomberg Global Aggregate Index (AUD hedged)
11.00%
8.00%
-3.00%
Global infrastructure securities
FTSE Developed Core Infrastructure 50/50 Net Index Hedged AUD
4.00%
5.00%
1.00%
Global property securities
FTSE EPRA/NAREIT Developed ex Australia Rental Index NTR (AUD hedged)
4.00%
3.00%
-1.00%
Global shares
MSCI All Country World ex Australia Net Index
16.00%
16.00%
No change
Global shares - hedged
MSCI All Country World ex Australia Net Index Hedged AUD
9.50%
11.00%
1.50%
Global shares – emerging markets
MSCI Emerging Markets Net Index
3.50%
5.00%
1.50%
Global shares – small companies
MSCI World Small Cap Index
3.00%
0.00%
-3.00%
Australian shares
S&P/ASX 300 Total Return Index
18.00%
20.00%
2.00%
Australian shares – small companies
S&P/ASX Small Ordinaries Index
2.00%
0.00%
-2.00%
Changes to the overall “Target” asset allocation as per the PDS:
- Global property securities – decrease from 4% to 3%
- Global infrastructure securities – increase from 4% to 5%
CFS Enhanced Index Balanced
Previous
New
Change
Cash
Bloomberg AusBond Bank Bill Index
5.00%
5.00%
No change
Australian fixed interest
Bloomberg AusBond Composite 0+ Yr Index
9.00%
12.00%
3.00%
Global fixed interest
Bloomberg Global Aggregate Corporate Index (AUD hedged)
7.00%
7.00%
No change
Global fixed interest
Bloomberg Global Aggregate Index (AUD hedged)
9.00%
6.00%
-3.00%
Global infrastructure securities
FTSE Developed Core Infrastructure 50/50 Net Index Hedged AUD
4.50%
5.50%
1.00%
Global property securities
FTSE EPRA/NAREIT Developed ex Australia Rental Index NTR (AUD hedged)
4.50%
3.50%
-1.00%
Global shares
MSCI All Country World ex Australia Net Index
19.00%
18.50%
-0.50%
Global shares - hedged
MSCI All Country World ex Australia Net Index Hedged AUD
11.50%
13.50%
2.00%
Global shares – emerging markets
MSCI Emerging Markets Net Index
4.00%
6.00%
2.00%
Global shares – small companies
MSCI World Small Cap Index
3.50%
0.00%
3.50%
Australian shares
S&P/ASX 300 Total Return Index
20.50%
23.00%
2.50%
Australian shares – small companies
S&P/ASX Small Ordinaries Index
2.50%
0.00%
-2.50%
Changes to the overall “Target” asset allocation as per the PDS:
- Global property securities – decrease from 4.5% to 3.5%
- Global infrastructure securities – increase from 4.5% to 5.5%
CFS Enhanced Index Growth
Previous
New
Change
Cash
Bloomberg AusBond Bank Bill Index
2.00%
2.00%
No change
Australian fixed interest
Bloomberg AusBond Composite 0+ Yr Index
6.00%
9.00%
3.00%
Global fixed interest
Bloomberg Global Aggregate Corporate Index (AUD hedged)
6.00%
6.00%
No change
Global fixed interest
Bloomberg Global Aggregate Index (AUD hedged)
6.00%
3.00%
-3.00%
Global infrastructure securities
FTSE Developed Core Infrastructure 50/50 Net Index Hedged AUD
5.00%
6.00%
1.00%
Global property securities
FTSE EPRA/NAREIT Developed ex Australia Rental Index NTR (AUD hedged)
5.00%
4.00%
-1.00%
Global shares
MSCI All Country World ex Australia Net Index
21.00%
20.50%
-0.50%
Global shares - hedged
MSCI All Country World ex Australia Net Index Hedged AUD
13.00%
15.00%
2.00%
Global shares – emerging markets
MSCI Emerging Markets Net Index
4.50%
7.00%
2.50%
Global shares – small companies
MSCI World Small Cap Index
4.00%
0.00%
-4.00%
Australian shares
S&P/ASX 300 Total Return Index
24.50%
27.50%
3.00%
Australian shares – small companies
S&P/ASX Small Ordinaries Index
3.00%
0.00%
-3.00%
Changes to the overall “Target” asset allocation as per the PDS:
- Global property securities – decrease from 5% to 4%
- Global infrastructure securities – increase from 5% to 6%
CFS Enhanced Index High Growth
Previous
New
Change
Cash
Bloomberg AusBond Bank Bill Index
1.00%
1.00%
No change
Global infrastructure securities
FTSE Developed Core Infrastructure 50/50 Net Index Hedged AUD
6.00%
6.00%
No change
Global property securities
FTSE EPRA/NAREIT Developed ex Australia Rental Index NTR (AUD hedged)
6.00%
4.00%
-2.00%
Global shares
MSCI All Country World ex Australia Net Index
26.50%
26.50%
No change
Global shares - hedged
MSCI All Country World ex Australia Net Index Hedged AUD
15.50%
18.50%
3.00%
Global shares – emerging markets
MSCI Emerging Markets Net Index
5.00%
8.00%
3.00%
Global shares – small companies
MSCI World Small Cap Index
4.00%
0.00%
-4.00%
Australian shares
S&P/ASX 300 Total Return Index
33.00%
36.00%
3.00%
Australian shares – small companies
S&P/ASX Small Ordinaries Index
3.00%
0.00%
-3.00%
Changes to the overall “Target” asset allocation as per the PDS:
- Global property securities – decrease from 6% to 4%
- Global shares – increase from 51% to 53%
You should read this Update in conjunction with the
FirstChoice Investments Option Menu.
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Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) is the trustee of the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557 and issuer of the FirstChoice range of super and pension products. Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) is the responsible entity and issuer of the CFS Multi-Manager Funds Product Disclosure Statement and products made available under FirstChoice Investments and FirstChoice Wholesale Investments.
Information in this update and on this webpage is provided by AIL and CFSIL. It may include general advice but does not consider your individual objectives, financial situation, needs or tax circumstances. You can find the target market determinations (TMD) for our financial products at www.cfs.com.au/tmd which include a description of who a financial product might suit. You should read the relevant Product Disclosure Statement (PDS), TMD and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. You can get the PDS and FSG at www.cfs.com.au or by calling us on 13 13 36.