CFS’ flagship fund surpasses $10b FUM milestone

Colonial First State (CFS) has announced its flagship CFS Geared Share fund has reached the milestone of $10 billion in funds under management (FUM).

The 27-year-old fund is one of the longest-running options available on CFS’ platforms, FirstChoice and Edge.

The fund, which has returned 23.3 per cent in the year to 30 June 2024 and 14.2 per cent on average annually since inception, offers exposure to large, high-quality mostly Australian companies with strong balance sheets and earnings, aiming to earn long-term returns from capital growth by borrowing to invest and to outperform the S&P/ASX 100 Accumulation Index over rolling seven-year periods.

CFS Executive Director, FirstChoice, Peter Labrie, said the fund’s gearing capability boosts returns from the underlying investments whether they are gains or losses and makes significant contribution to diversified portfolios to earn above average investment performance over the long term.

“The CFS Geared Share fund is for long-term investors, and we are pleased that it has grown over the years to reach $10 billion in total assets.  We also acknowledge the strong investment performance of First Sentier Investments who have managed the fund over its 27-year history,” Mr Labriehe said.

“CFS has deep relationships with financial advisers across Australia who have played a key role in the growth and expansion of our investment options over many years. Their professional expertise and guidance has been instrumental in helping their clients achieve great long-term returns.

“Both CFS members and the advisers they work with are attracted to the long-term performance of our geared investment options and we will continue to develop new offerings over time.”

CFS has grown its geared investment offering over the years, with the launch of the CFS Geared Index Australian Share fund and CFS Geared Index Global share fund in December 2021.

A $10,000 investment in the CFS Geared Share fund in August 1997 would also be worth approximately $350,000 today.