CFS adds inflation-ready investment suite to FirstChoice, Edge

Colonial First State (CFS) has added three new investment solutions to its adviser platforms FirstChoice and Edge, including a dynamic SMA and real return strategy.

The recently added solutions are designed to meet current and likely persistent investment challenges, including stubbornly high inflation and market volatility.

Among the newest additions include Real Return – a dynamic, multi-asset strategy designed for Australians approaching their pension phase, and meeting investor needs in a persistently high inflation environment.

The strategy is focused primarily on capital preservation and stability, with a return target of 5% above CPI over rolling five-year periods.

“Inflation remains persistently high. We believe this will continue for some time and there is now an urgent need for robust investment solutions that are suitable for this environment, particularly for the millions of Australians entering retirement,” said CFS head of investments Al Clark.

Clark added that the fund is designed to be adaptable to changing markets and economic conditions, and, being retirement-focused, is designed to minimise sequencing risk.

As well, CFS has added its Builder Series, launched back in October 2023, to its platforms.

The Builder Series consists of three contemporary multi-asset, multi-manager funds and an enhanced cash fund. According to CFS, the suite provides advisers with “the essential building blocks needed to construct diversified portfolios that align to their clients’ risk profiles and objectives”.

Finally, CFS has also added a new Dynamic SMA solution, which promises investors a “contemporary approach to asset allocation and manager selection… guided by a hands-on, purposeful approach to portfolio construction”.

The Dynamic SMS boasts a full toolkit of asset classes and investment vehicles, CFS said, including direct shares, managed funds and ETFs.

These exposures are “carefully selected to balance the need for performance, simplicity and efficiency”.

Clark concluded: “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.”