The CFS Investments team has made some adjustments to the asset allocation of the CFS Select series and Managed Investment Funds (MIF) diversified options with the aim of improving investor outcomes.
The changes are (where applicable):
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 emerging markets shares funded evenly from Australian and global shares. For the High Growth option, one-third is funded from global shares and two-thirds from Australian shares.
5. Increasing the allocation to 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 and “Target” allocations, as follows:
CFS Select/MIF 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
6.00%
6.50%
0.50%
Global shares - hedged
MSCI All Country World ex Australia Net Index Hedged AUD
4.00%
5.00%
1.00%
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
11.00%
11.50%
0.50%
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 Infrastructure securities – increase from 2% to 3%
- Global property securities – decrease from 2% to 1%
- Global shares – increase from 14% to 14.5%
- Australian shares - decrease from 12% to 11.5%
CFS Select/MIF Balanced
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
12.50%
13.50%
1.00%
Global shares - hedged
MSCI All Country World ex Australia Net Index Hedged AUD
7.50%
9.00%
1.50%
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
17.00%
17.50%
0.50%
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 Infrastructure securities – increase from 3% to 4%
- Global property securities – decrease from 3% to 2%
- Global shares – increase from 25.5% to 26.5%
- Australian shares - decrease from 18.5% to 17.5%
CFS Select/MIF Diversified
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
15.00%
16.00%
1.00%
Global shares - hedged
MSCI All Country World ex Australia Net Index Hedged AUD
10.00%
11.50%
1.50%
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
26.00%
27.50%
1.50%
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 Infrastructure securities – increase from 4.5% to 5.5%
- Global property securities – decrease from 4.5% to 3.5%
- Global shares – increase from 32.5% to 33.5%
- Australian shares - decrease from 28.5% to 27.5%
CFS Select/MIF High Growth
Previous
New
Change
Cash
Bloomberg AusBond Bank Bill Index
1.00%
1.00%
No change
Global shares
MSCI All Country World ex Australia Net Index
31.00%
31.50%
0.50%
Global shares - hedged
MSCI All Country World ex Australia Net Index Hedged AUD
18.00%
20.50%
2.50%
Global shares – emerging markets
MSCI Emerging Markets Net Index
5.00%
8.00%
3.00%
Global shares – small companies
Global shares – small companies
4.00%
0.00%
-4.00%
Australian shares
S&P/ASX 300 Total Return Index
37.00%
39.00%
2.00%
Australian shares – small companies
S&P/ASX Small Ordinaries Index
4.00%
0.00%
-4.00%
Changes to the overall target asset allocation as per the PDS:
- Global shares – increase from 58% to 60%
- Australian shares - decrease from 41% to 39%
You should read this Update in conjunction with the
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For more information about these changes, please refer to the relevant PDS, speak to a financial adviser if you have one, or call us on 13 13 36, 8:30am to 6pm Monday to Friday Sydney time.
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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 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 products made available under FirstChoice Wholesale Investments and other managed investment schemes.
Information on this webpage is provided by 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 https://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) 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.