Manager replacement - Ironbark Karara Australian Share
On 18 June 2021, the investment manager, name, strategy and objective of the Ironbark Karara Australian Share option on FirstChoice* changed.
The option will be managed by WaveStone Capital (WaveStone) and be named the WaveStone Australian Share option. The new investment option name will appear on the Colonial
First State public website, FirstNet, member statements and in e-Setup applications from 18 June 2021.
On 30 June 2021, a Supplementary PDS for FirstChoice* products will be issued outlining the changes below, FirstChoice Wholesale applications forms will be updated and the FirstChoice manager and asset allocation calculator for advisers will reflect the new investment option name.
Why the change?
In March 2021, Ironbark Asset Management announced that they will be closing the Ironbark Karara Australian Share fund. Colonial First State undertook a review of the Ironbark Karara Australian Share option and decided to appoint WaveStone as the new investment manager of the option. WaveStone will implement a comparable investment objective and strategy for the option. There is no change to the underlying management fee of the investment option.
The table below provides a summary of the changes:
Ironbark Karara Australian Share
WaveStone Australian Share
|Previous objective||New objective|
|To outperform the S&P/ASX 300 Accumulation Index, before fees and taxes, over rolling four-year periods.||The option aims to outperform the S&P/ASX 300 Accumulation Index before fees, costs and taxes over rolling three-year periods.|
|Previous strategy||New strategy|
|Karara Capital is an active and ‘style agnostic’ investment manager whose approach to Australian equities is built on the belief that original, forward-looking research can identify underappreciated companies. The investment approach emphasises the development of insights into a company’s longer-term prospects and systematically identifies gaps between fundamentals and consensus expectations. Close attention is paid to understanding the interplay between the holdings so as to avoid unintended risks. The option also includes an allocation to small companies.||WaveStone is an active investment manager that places primary emphasis on bottom-up stock picking through comprehensive research, instead of targeting a market index exposure. WaveStone’s investment approach focuses on companies which WaveStone believe exhibit Sustainable Competitive Advantage (SCA). A company’s SCA is determined after analysing its corporate make up or ‘DNA’ and the broader industry dynamics within which it operates. WaveStone then applies a set of valuation, balance sheet and growth tests to further refine the number of companies that are considered suitable for the portfolio. Applying portfolio risk guidelines to the target portfolio of companies together with an assessment of how each company’s share price is currently trading will determine the final portfolio mix for the option, typically between 20-50 individual company holdings. The option can invest up to 10% in companies listed on international stock exchanges. This exposure may be hedged back to the Australian dollar from time to time at WaveStone’s discretion. Derivatives may be used as a risk management tool to hedge against adverse market movements and at times, to gain exposure to underlying investments.|
|Previous benchmark||New benchmark|
|S&P / ASX 300 Accumulation Index||S&P / ASX 300 Accumulation Index|
|Previous asset allocation||New Asset allocation|
|Australian Shares||90%-100%||100%||Australian Shares^1||90%-100%||100%^1|
|Cash||0%-10%||0%||Cash||0% – 10%|
|Minimum suggested timeframe:
At least 7 years
|Minimum suggested timeframe:
At least 7 years
|Standard risk measure: 7||Standard risk measure: 7|
|^1 Maximum 10% weighting to global shares listed in developed markets.|
If you are an investor that invested into the Ironbark Karara Australian Share option via the Significant Investor Visa (SIV) program, please be advised that the new strategy, WaveStone Australian Share, is not a complying investment under the program. More information is available on SIV Compliant Investment Solutions.
Need more information?
If you are invested in this option or have any questions regarding the change, please speak to your financial adviser or call us on 13 13 36, Monday to Friday, 8am to 7pm Sydney time.
If you are a financial adviser please contact your local Business Development team.
*FirstChoice includes FirstChoice Wholesale Investments, FirstChoice Wholesale Personal Super, FirstChoice Wholesale Pension, FirstChoice Investments (closed to new accounts), FirstChoice Personal Super and FirstChoice Pension (closed to new accounts).
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.