CFS FirstChoice Wholesale and Retail investment text
(for June 2011 model changes)
Conservative
Recommendation
We recommend the following manager changes in your portfolio(s):
Fund
Action
Magellan Global Fund
Platinum International Fund
Add
Reduce
Reasons
Colonial First State recently updated the FirstChoice investment menu, adding the Magellan Global
Fund to the line-up. We view this as an attractive investment option, and have reduced the
allocation to Platinum in order to introduce the option into your portfolio. This manager addition
enhances the diversification of your portfolio.
About the Magellan Global Fund
The Magellan Global fund is a benchmark unaware, long only, concentrated portfolio of global
companies. Magellan focus on buying the highest ‘quality’ companies at a significant discount to
what they perceive the company is worth. The portfolio will hold between 20 and 40 positions, with
stocks and sizes determined by the conviction of the team, not with any relevance to the
benchmark. The currency positions of the fund are unhedged.
Moderately Conservative
Recommendation
We recommend the following manager changes in your portfolio(s):
Fund
Action
Magellan Global Fund
Solaris Core Australian Equity Fund
Fidelity Australian Equities Fund
Generation Global Share Fund
MFS Global Equity Fund
Platinum International Fund
Add
Add
Remove
Remove
Reduce
Reduce
Reasons
Colonial First State recently updated the FirstChoice investment menu, adding the Magellan Global
Fund to the line-up. We view this as a superior investment option, and have removed the
Generation Global Share Fund in order to introduce the option into your portfolio. We have also
reduced the allocation to the MFS Global Equity Fund and Platinum International Fund to
accommodate the change. We are still comfortable with these managers, however we believe that
the addition of the Magellan Global Fund warrants a slight reduction in their weightings.
At the same time CFS added the Solaris Core Australian Equity Fund to the menu. We view this as
a superior option to the Fidelity Australian Equities Fund, and so we have removed this option from
the portfolio.
About the Magellan Global Fund
The Magellan Global fund is a benchmark unaware, long only, concentrated portfolio of global
companies. Magellan focus on buying the highest ‘quality’ companies at a significant discount to
what they perceive the company is worth. The portfolio will hold between 20 and 40 positions, with
stocks and sizes determined by the conviction of the team, not with any relevance to the
benchmark. The currency positions of the fund are unhedged.
About the Solaris Core Australian Equity Fund
Solaris is a benchmark aware, long only Australian equity manager. They have an experienced
team, including five high quality analysts/portfolio managers. The entire team of nine used to be
the Australian equities team at Suncorp, where they managed practically identical products. Whilst
at Suncorp they had a long and successful track record, and at Solaris they implement that same
established, proven process.
Balanced
Recommendation
We recommend the following manager changes in your portfolio(s):
Fund
Action
BlackRock Asset Allocation Alpha Fund
Magellan Global Fund
Solaris Core Australian Equity Fund
Fidelity Australian Equities Fund
Generation Global Share Fund
Lodestar Australian Strategic Share Fund
MFS Global Equity Fund
Platinum International Fund
Add
Add
Add
Remove
Remove
Reduce
Reduce
Reduce
Reasons
Colonial First State recently updated the FirstChoice investment menu, adding the Magellan Global
Fund to the line-up. We view this as a superior investment option, and have removed the
Generation Global Share Fund in order to introduce the option into your portfolio. We have also
reduced the allocation to the MFS Global Equity Fund and Platinum International Fund to
accommodate the change. We are still comfortable with these managers, however we believe that
the addition of the Magellan Global Fund warrants a slight reduction in their weightings.
At the same time CFS added the Solaris Core Australian Equity Fund to the menu. We view this as
a superior option to the Fidelity Australian Equities Fund, and so we have removed this option from
the portfolio. We have also reduced the allocation to the Lodestar Australian Strategic Share Fund
to accommodate the change.
CFS also added the BlackRock Asset Allocation Alpha Fund to the investment menu. We view this
fund as a good diversifier, and as a result we recommend rebalancing your portfolio by increasing
your exposure to alternative assets (to be funded by reducing exposure to the Australian and
international shares).
About the BlackRock Asset Allocation Alpha Fund
The BlackRock Asset Allocation Alpha Fund is a highly tactical, absolute return focused hedge
fund which aims to take advantage of opportunities in a number of global markets, including equity,
bond, commodity and currency markets. The manager uses both directional and relative value
strategies, and relies on their ability to shift the positioning of the fund in a relatively small amount
of time. We have a high level of conviction in the key personnel involved in the management of the
fund, David Hudson and Geoff Ryan, though the nature of the underlying strategies means that the
fund is only suitable for those investors with a moderate to high tolerance for risk.
About the Magellan Global Fund
The Magellan Global fund is a benchmark unaware, long only, concentrated portfolio of global
companies. Magellan focus on buying the highest ‘quality’ companies at a significant discount to
what they perceive the company is worth. The portfolio will hold between 20 and 40 positions, with
stocks and sizes determined by the conviction of the team, not with any relevance to the
benchmark. The currency positions of the fund are unhedged.
About the Solaris Core Australian Equity Fund
Solaris is a benchmark aware, long only Australian equity manager. They have an experienced
team, including five high quality analysts/portfolio managers. The entire team of nine used to be
the Australian equities team at Suncorp, where they managed practically identical products. Whilst
at Suncorp they had a long and successful track record, and at Solaris they implement that same
established, proven process.
Assertive
Recommendation
We recommend the following manager changes in your portfolio(s):
Fund
Action
BlackRock Asset Allocation Alpha Fund
Magellan Global Fund
Solaris Core Australian Equity Fund
Generation Global Share Fund
Integrity Australian Share Fund
DWS Global Equity Thematic Fund
Fidelity Australian Equities Fund
Lodestar Australian Strategic Share Fund
MFS Global Equity Fund
Platinum International Fund
Add
Add
Add
Remove
Remove
Reduce
Reduce
Reduce
Reduce
Reduce
Reasons
Colonial First State recently updated the FirstChoice investment menu, adding the Magellan Global
Fund to the line-up. We view this as a superior investment option, and have removed the
Generation Global Share Fund in order to introduce the option into your portfolio. We have also
reduced the allocation to the DWS Global Equity Thematic Fund, MFS Global Equity Fund and
Platinum International Fund to accommodate the change. We are still comfortable with these
managers, however we believe that the addition of the Magellan Global Fund warrants a slight
reduction in their weightings.
At the same time CFS added the Solaris Core Australian Equity Fund to the menu. We view this as
a superior option to the Integrity Australian Share Fund, and so we have removed this option from
the portfolio. We have also reduced the allocation to the Lodestar Australian Strategic Share Fund
and Fidelity Australian Equities Fund to accommodate the change.
CFS also added the BlackRock Asset Allocation Alpha Fund to the investment menu. We view this
fund as a good diversifier, and as a result we recommend rebalancing your portfolio by increasing
your exposure to alternative assets (to be funded by reducing exposure to the Australian and
international shares).
About the BlackRock Asset Allocation Alpha Fund
The BlackRock Asset Allocation Alpha Fund is a highly tactical, absolute return focused hedge
fund which aims to take advantage of opportunities in a number of global markets, including equity,
bond, commodity and currency markets. The manager uses both directional and relative value
strategies, and relies on their ability to shift the positioning of the fund in a relatively small amount
of time. We have a high level of conviction in the key personnel involved in the management of the
fund, David Hudson and Geoff Ryan, though the nature of the underlying strategies means that the
fund is only suitable for those investors with a moderate to high tolerance for risk.
About the Magellan Global Fund
The Magellan Global fund is a benchmark unaware, long only, concentrated portfolio of global
companies. Magellan focus on buying the highest ‘quality’ companies at a significant discount to
what they perceive the company is worth. The portfolio will hold between 20 and 40 positions, with
stocks and sizes determined by the conviction of the team, not with any relevance to the
benchmark. The currency positions of the fund are unhedged.
About the Solaris Core Australian Equity Fund
Solaris is a benchmark aware, long only Australian equity manager. They have an experienced
team, including five high quality analysts/portfolio managers. The entire team of nine used to be
the Australian equities team at Suncorp, where they managed practically identical products. Whilst
at Suncorp they had a long and successful track record, and at Solaris they implement that same
established, proven process.
Aggressive
Recommendation
We recommend the following manager changes in your portfolio(s):
Fund
Action
BlackRock Asset Allocation Alpha Fund
Magellan Global Fund
Solaris Core Australian Equity Fund
Generation Global Share Fund
Integrity Australian Share Fund
Ausbil Active Australian Equity Fund
DWS Global Equity Thematic Fund
Fidelity Australian Equities Fund
Lodestar Australian Strategic Share Fund
MFS Global Equity Fund
Add
Add
Add
Remove
Remove
Increase
Reduce
Reduce
Reduce
Reduce
Reasons
Colonial First State recently updated the FirstChoice investment menu, adding the Magellan Global
Fund to the line-up. We view this as a superior investment option, and have removed the
Generation Global Share Fund in order to introduce the option into your portfolio. We have also
reduced the allocation to the DWS Global Equity Thematic Fund and MFS Global Equity Fund to
accommodate the change. We are still comfortable with these managers, however we believe that
the addition of the Magellan Global Fund warrants a slight reduction in their weightings.
At the same time CFS added the Solaris Core Australian Equity Fund to the menu. We view this as
a superior option to the Integrity Australian Share Fund, and so we have removed this option from
the portfolio. We have also reduced the allocation to the Lodestar Australian Strategic Share Fund
and Fidelity Australian Equities Fund to accommodate the change, and slightly increased the
allocation to the Ausbil Active Australian Equity Fund.
CFS also added the BlackRock Asset Allocation Alpha Fund to the investment menu. We view this
fund as a good diversifier, and as a result we recommend rebalancing your portfolio by increasing
your exposure to alternative assets (to be funded by reducing exposure to the Australian and
international shares).
About the BlackRock Asset Allocation Alpha Fund
The BlackRock Asset Allocation Alpha Fund is a highly tactical, absolute return focused hedge
fund which aims to take advantage of opportunities in a number of global markets, including equity,
bond, commodity and currency markets. The manager uses both directional and relative value
strategies, and relies on their ability to shift the positioning of the fund in a relatively small amount
of time. We have a high level of conviction in the key personnel involved in the management of the
fund, David Hudson and Geoff Ryan, though the nature of the underlying strategies means that the
fund is only suitable for those investors with a moderate to high tolerance for risk.
About the Magellan Global Fund
The Magellan Global fund is a benchmark unaware, long only, concentrated portfolio of global
companies. Magellan focus on buying the highest ‘quality’ companies at a significant discount to
what they perceive the company is worth. The portfolio will hold between 20 and 40 positions, with
stocks and sizes determined by the conviction of the team, not with any relevance to the
benchmark. The currency positions of the fund are unhedged.
About the Solaris Core Australian Equity Fund
Solaris is a benchmark aware, long only Australian equity manager. They have an experienced
team, including five high quality analysts/portfolio managers. The entire team of nine used to be
the Australian equities team at Suncorp, where they managed practically identical products. Whilst
at Suncorp they had a long and successful track record, and at Solaris they implement that same
established, proven process.