CFS launches ‘flexible’ investment solutions to combat market volatility

In the latest of a series of expansions to its investment menu, Colonial First State (CFS) has launched three new investment solutions, including Real Return, Builder Series, and Dynamic SMA, on its FirstChoice and Edge platforms.

Described as an innovative multi-asset strategy, the Real Return fund aims to deliver a return of CPI+5 per cent over rolling five-year periods by prioritising capital preservation and stability.

As the latest addition to the CFS Builder Series, launched in 2023, Real Return will form two new multi-asset strategies, rounding out the series to three, consisting of contemporary, multi-manager funds and an enhanced cash fund.

CFS head of investments Al Clark argued that, as markets remain volatile and inflation remains high, there is an “urgent need for robust investment solutions” that can handle a more challenging environment.

“Our new Real Return fund is designed to be flexible and able to adapt to changing markets and economic environments. Critically, it is aimed at helping Australians approaching the pension phase who want to minimise sequencing risk and continue building wealth in retirement,” Clark said.

Guided by a hands-on, purposeful approach to portfolio construction, the CFS Dynamic SMA utilises a “full toolkit of asset classes and investment vehicles”, including direct shares, managed fund and exchange-traded funds, providing portfolios with exposure to a diversity of investment options while balancing performance, simplicity and efficiency.

The latest in a number of expansions to its investment menu this year, Clark noted the firm’s continued efforts to bring solutions to market that meet the needs of advisers and their clients.

“CFS is continuing to innovate and launch contemporary investment solutions that offer our customers and advisers greater choice and confidence at a time when markets are increasingly volatile,” he said.

“We are bringing these solutions to market across a range of multi-asset strategies, managed accounts and through our alliance partnerships.”

This comes just over a month after its last announcement in which CFS introduced global signature managed accounts on the CFS Edge platform, in addition to partnering with global equity managers, in order to expand advisers’ access to international markets.

With the November announcement, CFS said it would be utilising global equity managers, including T Rowe Price, CBRE Investment Management, ClearBridge, and Lazard Asset Management.

The firm also brought on several new portfolio managers, including AZ Sestante, InvestSense and Mercer, and added 21 new managed accounts to its Accelerate Series investment solution, bringing the total number of managed accounts of CFS Edge to more than 150.