Colonial First State Wholesale Funds APRA changes

CFS Wholesale Funds 

Changes to objectives, strategies and asset allocations 

Wholesale Indexed Funds 

Wholesale Premium Cash Fund 

Wholesale Premium Cash Enhanced Fund 

Colonial First State Wholesale Investments 

Wholesale Mezzanine Investments 

Changes of investment objectives 

We have updated the investment objectives of a number of the funds to meet the new 

prudential standards of the Australian Prudential Regulation Authority (APRA). These 

changes do not affect how these investment options are currently invested. 

Colonial First State Wholesale Investments 

The following wholesale options had their investment objectives updated on 11 

June 2013: 

Colonial First State Wholesale Australian Share Fund 

Previous Objective 

New Objective 

To provide long-term capital growth with some 

income by investing in a broad selection of 

Australian companies. 

To provide long-term capital growth with some 

income by investing in a broad selection of 

Australian companies. The option aims to 

outperform the S&P/ASX 300 

Accumulation Index over rolling three year 

periods before fees and taxes.

Colonial First State Wholesale Global Bond Fund 


New Objective 

To provide income-based returns that, over the 

medium term, outperform a portfolio of 

currency-hedged global government bonds. 

The option provides income-based returns, and 

aims to outperform the Citigroup World 

Government Bond Index ex Australia AUD 

Hedged Index over rolling three year 

periods before fees and taxes. 

Colonial First State Wholesale Global Emerging Market Fund 


New Objective 

To achieve long-term capital growth through 

investing in companies in emerging economies, 

including those listed on developed market 

exchanges whose activities predominantly take 

place in emerging market countries. 

To achieve long-term capital growth through 

investing in companies in emerging economies, 

including those listed on developed market 

exchanges whose activities predominantly take 

place in emerging market countries. The fund 

aims to outperform the MSCI Global 

Emerging Markets Index over rolling five 

year periods before fees and taxes. 

Colonial First State Wholesale Industrial Share Fund 


New Objective 

This fund aims to provide long-term capital 

growth by investing in a broad selection of 

Australian industrial companies. 

This fund aims to provide long-term capital 

growth by investing in a broad selection of 

Australian industrial companies. The option 

aims to outperform the S&P/ASX 300 

Industrials Index over rolling three year 


Colonial First State Sovereign Australian Bond Fund 


New Objective 

To provide income-based returns which exceed 

over the medium term the return provided by 

an Australian government and semigovernment 

bond index. 


aims to outperform the UBS Government 

Bond Index 0-5 Yrs over rolling three year 


Colonial First State Wholesale Government Inflation-Linked Bond Fund 


New Objective 

To provide an income-based return that is 

protected against the effects of inflation over 

the medium term by investing in a portfolio of 

Australian Commonwealth and Semigovernment 

inflation-linked securities. 


aims to outperform the UBS Government 

Inflation-Linked Index 0+ with inflation 

protection over rolling three year periods 

before fees and taxes. 

Colonial First State Inflation-Linked Bond Fund 


New Objective 

To provide an income-based return that is 

protected against the effects of inflation over 

the medium term by investing in a portfolio of 

Australian inflation-linked securities. 


aims to outperform the UBS Australian 

Inflation Index 0+ Yr with inflation 

protection over rolling three year periods 

before fees and taxes.

Colonial First State Wholesale Global Market Neutral Fund 


New Objective 

The fund aims to generate positive returns by 

exploiting stock specific investment 

opportunities while maintaining a neutral 

exposure to the broader global equity market. 

The fund aims to generate positive returns by 

exploiting stock specific investment 

opportunities while maintaining a neutral 

exposure to the broader global equity 

market. The option aims to outperform the 

UBS Australian Bank Bill Index over rolling 

three year periods before fees and taxes. 

Colonial First State Wholesale International High Yield Fund 


New Objective 

To provide returns through investing in high 

yielding international fixed interest investments 

which, over the medium term, exceed those 

provided by funds restricted to government or 

other highly rated securities. 

To provide returns through investing in high 

yielding international fixed interest investments 

which, over the medium term, exceed those 

provided by funds restricted to government or 

other highly rated securities. The option aims 

to outperform the Merrill Lynch US High 

Yield BB-B Rated Constrained Index (AUD 

Hedged) before fees and taxes over a 

rolling three year periods. 

Colonial First State Wholesale Asian Bond Fund 


New Objective 

To provide income based returns over the 

medium term by predominantly investing in a 

diversified portfolio of Asian fixed interest 

investments. The fund may also, for the 

purposes of efficient portfolio management, 

invest in the treasury bonds of the United 

States and Australian Governments. 

To provide income based returns over the 

medium term by predominantly investing in a 

diversified portfolio of Asian fixed interest 

investments. The fund may also, for the 

purposes of efficient portfolio management, 

invest in the treasury bonds of the United 

States and Australian Governments. The fund 

aims to outperform the JPM Asia Credit 

Index (AUD hedged) over rolling three 

years before fees and taxes. 

Colonial First State Wholesale Equity Income Fund - Super 


New Objective 

To provide regular income, including taxeffective 

income and some capital growth by 

investing predominantly in a broad selection of 

Australian equities and using equity derivative 

strategies to enhance income returns and 

manage portfolio risk. 

Previous Strategy 

To provide a total return comprised of regular 

income, franking credits and some capital 

growth from Australian shares over the long 

term, delivered with consistently lower volatility 

than the S&P/ASX 100 Index. The option aims 

to outperform the S&P/ASX 100 

Accumulation Index over a rolling five year 

period before fees and taxes. 

New Strategy

The fund’s strategy is to focus on income 

generation by investing in Australian shares. 

The fund uses derivatives to generate 

additional income and adjust the risk and 

return characteristics of the portfolio and 

individual holdings. In the selection of 

Australian shares, the fund utilises our Core 

Equity investment process, which focuses on 

companies that have been mispriced by the 

market. Suitable companies are identified by 

detailed fundamental research, including a high 

number of company visits and utilising a 

proprietary database to analyse company 

financials. On occasion, the fund may 

opportunistically short sell securities. The fund 

predominantly invests in Australian dollar 

denominated securities and therefore does not 

hedge currency risk. 

The fund’s returns are generated from a 

number of sources, including dividends, 

franking credits and capital returns from 

Australian shares, as well as option premium 

income. The fund uses derivatives to modify the 

return profile of its Australian share holdings. 

The use of equity options in conjunction with 

Australian shares is expected to result in a 

greater proportion of the total return delivered 

as income and reduced volatility in returns. In 

the selection of Australian shares, the fund 

utilises the proven Australian equities, core 

investment process. Investment opportunities 

are identified by detailed fundamental research, 

including a high number of company visits and 

utilising a proprietary database to analyse 

company financials. On occasion, the fund may 

opportunistically short sell securities. 

The fund predominantly invests in Australian 

dollar denominated securities and therefore 

does not hedge currency risk. The fund is 

designed and managed for superannuation 

investors. 

Colonial First State Wholesale Equity Income Fund – Tax Exempt 


New Objective 

To provide regular income, including taxeffective 

income and some capital growth by 

investing predominantly in a broad selection of 

Australian equities and using equity derivative 

strategies to enhance income returns and 

manage portfolio risk. 


The fund’s strategy is to focus on income 

generation by investing in Australian shares. 

The fund uses derivatives to generate 

additional income and adjust the risk and 

return characteristics of the portfolio and 

individual holdings. In the selection of 

Australian shares, the fund utilises our Core 

Equity investment process, which focuses on 

companies that have been mispriced by the 

market. Suitable companies are identified by 

detailed fundamental research, including a high 

number of company visits and utilising a 

proprietary database to analyse company 

financials. On occasion, the fund may 

opportunistically short sell securities. The fund 

predominantly invests in Australian dollar 

denominated securities and therefore does not 

hedge currency risk. 

To provide a total return comprised of regular 

income, franking credits and some capital 

growth from Australian shares over the long 

term, delivered with consistently lower volatility 

than the S&P/ASX 100 Index. The option aims 

to outperform the S&P/ASX 100 

Accumulation Index over a rolling five year 

period before fees and taxes. 

New Strategy 

The fund’s returns are generated from a 

number of sources, including dividends, 

franking credits and capital returns from 

Australian shares, as well as option premium 

income. The fund uses derivatives to modify the 

return profile of its Australian share holdings. 

The use of equity options in conjunction with 

Australian shares is expected to result in a 

greater proportion of the total return delivered 

as income and reduced volatility in returns. In 

the selection of Australian shares, the fund 

utilises the proven Australian equities, core 

investment process. Investment opportunities 

are identified by detailed fundamental research, 

including a high number of company visits and 

utilising a proprietary database to analyse 

company financials. On occasion, the fund may 

opportunistically short sell securities. 

The fund predominantly invests in Australian 

dollar denominated securities and therefore 

does not hedge currency risk. The fund is 

designed and managed for superannuation 

investors.

Colonial First State Wholesale Worldwide Sustainability Fund 


New Objective 

The fund aims to achieve long-term capital 

growth by investing in the shares of those 

companies which are particularly well 

positioned to benefit from, and contribute to 

the sustainable development of the countries in 

which they operate. 


The fund will seek to invest in a diverse 

portfolio of equity securities which are listed, 

traded or dealt in on any of the regulated 

markets worldwide. The fund is not managed to 

a benchmark and may have exposure to 

developed or emerging markets whilst 

maintaining its geographic diversity. The 

investment process will take account of 

sustainability themes and issues and requires 

positive engagement with companies in respect 

of these. The fund does not hedge currency 

risk. 

To achieve long-term capital growth by 

investing in the shares of those companies 

which are particularly well positioned to benefit 

from, and contribute to the sustainable 

development of the countries in which they 

operate. The fund aims to exceed the MSCI 

All Country World Index over rolling five 

year periods before fees and taxes. 

New Strategy 

The fund will seek to invest in a diverse 

portfolio of equity securities which are listed, 

traded or dealt in on any of the regulated 

markets worldwide. The portfolio construction 

process does not take into account the 

constituents of the benchmark. The fund may 

have exposure to developed or emerging 

markets whilst maintaining its geographic 

diversity. The investment process will take 

account of sustainability themes and issues and 

requires positive engagement with companies 

in respect of these. The fund does not hedge 

currency risk. 

Acadian Wholesale Australian Equity Top 200 Long Short Fund 


New Objective 

To maximise risk-adjusted, long-term returns, 

by investing in undervalued stocks and short 

selling overvalued stocks listed on the 

Australian Securities Exchange (the Fund will 

generally invest in stocks listed in the S&P/ASX 

200 Index) while carefully controlling portfolio 

risk and transaction costs. 

“To maximise risk-adjusted, long-term returns, 

by investing in undervalued stocks and short 

selling overvalued stocks listed on the 

Australian Securities Exchange. The Fund aims 

to outperform the S&P/ASX 200 Accumulation 

Index over rolling three-year periods after fees 

and taxes, while carefully controlling portfolio 

risk and transaction costs.” 

Colonial First State Wholesale Global Health & Biotechnology 


New Objective 

To provide long-term capital growth by 

predominantly investing in companies around 

the world, whose primary business is in the 

fields of pharmaceuticals, biotechnology, 

healthcare services and medical products. 




fields of pharmaceuticals, biotechnology, 

healthcare services and medical products. The 

option aims to outperform the MSCI All 

Countries Health Care Index over rolling 

three year periods before fees and taxes.

Colonial First State Wholesale Global Technology & Communications 


New Objective 




fields of technology, and/or communications. 




fields of technology, and/or communications. 

The option aims to outperform the MSCI 

All Countries Technology and 

Communications Free Index over rolling 


Wholesale Mezzanine Investments 

The following wholesale mezzanine options had their investment objectives 

updated on 11 June 2013: 

Realindex Australian Share – Class A 


To provide capital and income growth by 

investing in Australian shares and 

outperforming the S&P/ASX 200 Accumulation 

Index over the longer term. 


Realindex selects and weights companies listed 

on the Australian Securities Exchange 

according to their economic footprint defined by 

fundamental measures of company size (sales, 

cash flow, book value and dividends). The 

portfolio is further enhanced by applying 

additional factors such as quality of earnings 

and debt coverage. Realindex portfolios provide 

the benefits associated with traditional index 

funds, including lower cost, lower turnover, 

diversification and liquidity. By selecting and 

weighting stocks based on fundamental 

accounting measures, the approach is designed 

to overcome the limitations of traditional 

market capitalisation weighted indices (which 

overweight overpriced stocks and underweight 

underpriced stocks), with the aim of generating 

higher returns. 

New Objective 


investing in Australian shares and 

outperforming the S&P/ASX 200 Accumulation 

Index over rolling three-year periods before 

fees and taxes. 

New Strategy 

Realindex uses the RAFI® methodology in the 

construction of its portfolio which selects and 

weights companies listed on the Australian 

Securities Exchange according to their 

economic footprint defined by fundamental 

measures of company size (sales, cash flow, 

book value and dividends). The portfolio is 

further enhanced by applying additional factors 

such as quality of earnings and debt coverage. 

Realindex portfolios provide the benefits 

associated with traditional index funds, 

including lower cost, lower turnover, 








higher returns.

Realindex Australian Small Companies – Class A 


New Objective 


investing in smaller Australian companies and 

outperforming the S&P/ ASX Small Ordinaries 

Accumulation Index over the longer term. 


Realindex selects and weights companies listed 

on the Australian Securities Exchange that are 

outside both the ASX 100 and the 100 largest 

companies according to their economic 

footprint, defined by measures of company size 

(sales, cash flow, book value and dividends). 

The portfolio is further enhanced by applying 


and debt coverage. Realindex portfolios provide 

the benefits associated with traditional index 

funds, including lower cost, lower turnover, 










investing in smaller Australian companies and 

outperforming the S&P/ ASX Small Ordinaries 

Accumulation Index over rolling three-year 


New Strategy 



weights companies listed on the Australian 

Securities Exchange that are outside both the 

ASX 100 and the 100 largest companies 

according to their economic footprint, defined 

by measures of company size (sales, cash flow, 

book value and dividends). The portfolio is 

further enhanced by applying additional factors 

such as quality of earnings and debt coverage. 

Realindex portfolios provide the benefits 

associated with traditional index funds, 










Realindex Global Share - Class A 



investing in global shares and outperforming 

the MSCI All Countries World (ex Australia) 

Index (net dividends reinvested), in Australian 

dollar terms over the longer term. 


New Objective 




Index (net dividends reinvested), in Australian 

dollar terms over rolling three-year periods 

before fees and taxes. 

New Strategy

Realindex selects and weights companies 

according to their economic footprint defined by 

fundamental measures of company size (sales, 

cash flow, book value and dividends). The 

portfolio is further enhanced by applying 


and debt coverage. This option does not hedge 

currency risk. Realindex portfolios provide the 

benefits associated with traditional index funds, 












weights companies according to their economic 

footprint defined by fundamental measures of 

company size (sales, cash flow, book value and 

dividends). The portfolio is further enhanced by 

applying additional factors such as quality of 

earnings and debt coverage. This option does 

not hedge currency risk. Realindex portfolios 

provide the benefits associated with traditional 

index funds, including lower cost, lower 

turnover, diversification and liquidity. By 

selecting and weighting stocks based on 

fundamental accounting measures, the 

approach is designed to overcome the 

limitations of traditional market capitalisation 

weighted indices (which overweight overpriced 

stocks and underweight underpriced stocks), 

with the aim of generating higher returns. 

Realindex Wholesale Global Share Hedged - Class A 


New Objective 




Index (net dividends reinvested), hedged to 

Australian dollars over the longer term. 




by fundamental measures of company size 




and debt coverage. This option aims to hedge 















Index (net dividends reinvested), hedged to 

Australian dollars over rolling three-year 


New Strategy 




footprint, defined by fundamental measures of 


dividends). The portfolio is further enhanced by 

applying additional factors such as quality of 

earnings and debt coverage. This option aims to 

hedge currency risk. Realindex portfolios 

provide the benefits associated with traditional 

index funds, including lower cost, lower 

turnover, diversification and liquidity. By 






stocks and underweight underpriced stocks), 


Realindex Wholesale Emerging Markets - Class A 

Previous Objectives 

New Objectives


investing in global shares predominantly in 

emerging markets and outperforming the MSCI 

Global Emerging Markets Index (net dividends 

reinvested), in Australian dollar terms over the 

longer term. 

Previous strategy 



by fundamental measures of company size 




and debt coverage. This option does not hedge 










underpriced stocks) with the aim of generating 


Acadian Quant Yield- Class A 


To provide investment returns in excess of the 

Reserve Bank of Australia (RBA) cash rate over 

the medium term, with a relatively low degree 

of volatility. This will be achieved by combining 

cash and fixed interest investments with long 

and short equity holdings chosen using 

Acadian’s equity investment process. 

Sophisticated portfolio construction techniques 

will be used to implement this in a way that 

limits equity market exposure. 


investing in global shares predominantly in 

emerging markets and outperforming the MSCI 

Global Emerging Markets Index (net dividends 

reinvested), in Australian dollar terms over 

rolling three-year periods before fees and 

taxes. 

New Strategy 

Realindex uses the RAFI® methodology in 

constructing their portfolio which selects and 


footprint, defined by fundamental measures of 


dividends). The portfolio is further enhanced 

by applying additional factors such as quality 

of earnings and debt coverage. This option 

does not hedge currency risk. Realindex 

portfolios provide the benefits associated with 

traditional index funds, including lower cost, 

lower turnover, diversification and liquidity. By 






stocks and underweight underpriced stocks) 


New Objective 

To provide investment returns in excess of the 

Reserve Bank of Australia (RBA) cash rate over 

rolling three-year periods before fees and 

taxes, with a relatively low degree of volatility. 

This will be achieved by combining cash and 

fixed interest investments with long and short 

equity holdings chosen using Acadian’s equity 

investment process. Sophisticated portfolio 

construction techniques will be used to 

implement this in a way that limits equity 

market exposure. 

Acadian Australian Equity High Yield Fund - Class A 


New Objective 

The strategy aims to deliver a grossed-up yield 

2-3% above the grossed-up yield of the 

S&P/ASX300 Accumulation Index whilst 

reducing capital volatility. The strategy seeks to 

provide a stable income stream with index like 

total returns while reducing the volatility of the 

capital base, when compared to the Index, over 

a full investment cycle. 

“The strategy aims to deliver a grossed-up yield 

2% above the grossed-up yield of the 

S&P/ASX300 Accumulation Index over rolling 

three-year periods before fees and taxes whilst 

reducing capital volatility. The strategy seeks to 

provide a stable income stream with index like 

total returns while reducing the volatility of the 

capital base, when compared to the Index, over 

a full investment cycle.” 

Acadian Global Managed Volatility Equity - Class A 


New Objective

To provide clients with the opportunity to 

capture returns similar to that of a global 

equity index but with significantly lower 

absolute volatility and superior downside 

protection over the longer term. Limiting 

absolute risk has the potential to allow 

investors to compound wealth more efficiently 

and steadily than traditional capitalisation 

weighted indices. 

To capture returns similar to that of a global 

equity index but with significantly lower 

absolute volatility and, superior downside 

protection, over the longer term. Limiting 

absolute risk has the potential to allow 

investors to compound wealth more efficiently 

and steadily than traditional capitalisation 

weighted indices. The option aims to 

perform in line with the MSCI All Country 

World Index (in AUD) over rolling threeyear 

periods after fees and taxes. 

Colonial First State Global Resources Tactical - Class A 


New Objective 

The fund aims to generate positive returns over 

the long term from predominantly investing 

both long and short in the shares of companies 

involved in the resources sector globally. 


The option aims to generate a positive 

absolute return over a rolling five year 

period before fees and taxes by investing 

both long and short in global resource 

equities. 

New Strategy

The option aims to generate returns by 

capitalising on both our positive and negative 

views on resource companies globally. Positive 

views are implemented by holding the 

company’s securities (long positions) and 

negative views by selling the company’s 

securities, including short selling (short 

positions). Short selling involves selling an 

asset that is not already held by the option, 

and this is generally done by borrowing this 

asset from another party to make the sale. The 

difference between the amount invested in the 

long positions and short positions represents 

the option’s net exposure to resource shares. 

This exposure will vary over time, depending 

on investment opportunities and market 

conditions, but will be managed within the 

range of -50%, to +100% of total net portfolio 

value including cash. 

Investments are generally selected by careful 

examination of the underlying companies and 

their assets rather than trying to predict 

commodity prices. For long positions, we look 

for companies that generally have high quality 

assets and a low cost of production, with 

growing earnings, sound balance sheets and 

good management. Companies with 

characteristics opposite to these may offer 

shorting opportunities. Derivatives may be used 

by the option to achieve its investment 

objectives and control risk. The option does not 

generally hedge currency risk. To execute this 

strategy, options are placed on deposit in the 

base currency and, if necessary, borrowings are 

taken out in other currencies to finance the 

purchase of stock. The net effect of this on the 

investment risk of the portfolio is that the 

option is exposed to some currency fluctuations 

and the difference between the cost of the 

borrowings and the receipt of interest on 

deposits. The interest rate risk to the portfolio 

is not significant, as the deposit and borrowing 

interest rates are variable. 

The fund aims to generate returns by 

capitalising on both our positive and negative 

views on resource companies globally. Positive 

views are implemented by holding the 

company’s securities (long positions) and 

negative views by selling the company’s 

securities, including short selling (short 

positions). Short selling involves selling an 

asset that is not already held by the fund, and 

this is generally done by borrowing this asset 

from another party to make the sale. The 

difference between the amount invested in the 

long positions and short positions represents 

the fund’s net exposure to resource shares. 

This exposure will vary over time, depending on 

investment opportunities and market 

conditions, but will be managed within the 

range of -50% to +100% of total net portfolio 

value including cash. 

Investments are generally selected by careful 

examination of the underlying companies and 

their assets rather than trying to predict 

commodity prices. For long positions, we look 

for companies that generally have high quality 

assets and a low cost of production, with 

growing earnings, sound balance sheets and 

good management. Companies with 

characteristics opposite to these may offer 

shorting opportunities. 

Derivatives may be used by the fund to achieve 

its investment objectives and control risk. The 

fund does not generally hedge currency risk. 

Colonial First State Global Soft Commodity - Class A 


New Objective 

To provide long-term capital growth through 

investing in a diversified portfolio of companies 

in the global soft commodity sector which are 

primarily traded on regulated markets. 

To provide long-term capital growth through 

investing in a diversified portfolio of companies 

in the global soft commodity sector which are 

primarily traded on regulated markets. The 

option aims to outperform the DAX Global 

Agribusiness (75%) and the S&P Global 

Timber and Forestry (25%) Index over 

rolling seven year periods before fees and 

taxes.


The fund’s strategy is generally to invest in 

companies involved in the production, 

processing, transportation, trading and 

marketing of soft commodities, as well as those 

which supply products and services to the 

agricultural industry. The focus is on companies 

which have strong production growth profiles, 

better than average margins and conservative 

balance sheets. Generally, the global share and 

currency exposures will not be hedged to the 

Australian dollar. Derivatives are permitted 

(these holdings will generally be as a result of 

capital raising, equity offering, or stapled 

security) for the purposes of generating 

investment returns and managing portfolio risk 

and cash exposures. 

New Strategy 

The fund’s strategy is generally to invest in 

companies involved in the production, 

processing, transportation, trading and 

marketing of soft commodities, as well as those 

which supply products and services to the 

agricultural industry. The focus is on companies 

which have strong production growth profiles, 

better than average margins and conservative 

balance sheets. The fund does not hedge 

currency risk. 

Aspect Diversified Futures - Class A 


To generate significant medium-term capital 

growth independent of overall movements in 

traditional stock and bond markets within a 

rigorous risk management framework. 


Aspect takes a quantitative and systematic 

approach to investment management. Aspect 

has no market sector or directional preference, 

and markets are selected on the basis of 

expected returns, allocation of risk limits, 

diversification and liquidity. Aspect’s trendfollowing 

systems trade in over 120 of the most 

liquid global futures and forward markets and 

employ a fully automated system to collect, 

process and analyse market data (including 

current and historical price data), as well as 

idiosyncratic non-price data in order to identify 

and exploit directional moves (or ‘trends’) in 

markets. By maintaining a comparatively small 

exposure to any individual contract, Aspect 

achieves sector and contract diversification, 

thereby allowing a wide range of opportunities 

to be exploited and maximising expected longterm 

risk‐adjusted returns. The fund aims to 

minimise unintentional currency exposure. 

New Objective 

To generate significant medium-term capital 

growth independent of overall movements in 

traditional stock and bond markets within a 

rigorous risk management framework. The 

option aims to provide a return greater 

than 0% over rolling three-year periods 

after fees and taxes. 

New Strategy 

Aspect takes a quantitative and systematic 

approach to investment management. Aspect 

has no market sector or directional preference, 

and markets are selected on the basis of 

diversification, liquidity and transaction costs. 

Aspect’s trend-following systems trade in over 

120 of the most liquid global futures and 

forward markets and employ a fully automated 

system to collect, process and analyse market 

data in order for the model to determine a view 

of the trend following opportunities in each 

market in the portfolio. By maintaining a 

comparatively small exposure to any individual 

contract, Aspect achieves sector and contract 

diversification, thereby allowing a wide range of 

opportunities to be exploited and maximising 

expected long term risk‐adjusted returns. The 

fund aims to minimise unintentional currency 

exposure. 

Colonial First State Global Listed Infrastructure Securities - Class A 


New Objective 

To deliver capital growth and inflationprotected 

income by investing in a globally 

diversified portfolio of listed infrastructure and 

infrastructure related securities. 


To deliver capital growth and inflation-protected 

income by investing in a globally diversified 

portfolio of infrastructure securities. The 

option aims to outperform the UBS Global 

Infrastructure and Utilities 50-50 Total 

Return Index (AUD hedged) over rolling 


New Strategy

The fund invests in infrastructure and 

infrastructure-related companies from around 

the world. The assets held by these companies 

typically have high barriers to entry, strong 

pricing power, sustainable growth and 

predictable cash flow. This fund targets 

companies with robust business models and 

strong management execution. The fund’s 

strategy is based on an active, bottom-up 

security selection process that aims to exploit 

market inefficiencies, utilising fundamental, 

qualitative and valuation analysis. The fund 

looks to integrate this stock selection with riskmanaged 

portfolio construction. This fund aims 

to hedge its currency exposure. 

The fund invests in shares of infrastructure 

companies around the world. 

The infrastructure sector includes operating 

assets from the transport, utilities, energy and 

communications sectors. The assets held by 

these companies typically offer high barriers to 

entry, pricing power, and structural growth. The 

strategy is based on active, bottom-up security 

selection which seeks to identify mispricing. The 

fund seeks to minimise risk through on-theground 

research, focus on quality and sensible 

portfolio construction. This fund aims to hedge 

its currency exposure. 

Wholesale Indexed Funds 

The following wholesale index options had their investment objectives updated 

on 11 June 2013: 

Colonial First State Wholesale Indexed Australian Share Fund 


New Objective 

To closely track the S&P/ASX 200 Accumulation 

Index with the aim of generating returns 

(before tax and fees and assuming income is 

reinvested) comparable to the Australian 

sharemarket as measured by that benchmark. 

To closely track the S&P/ASX 200 Accumulation 



reinvested) comparable to the Australian 

sharemarket as measured by that 

benchmark over rolling one year periods. 

Colonial First State Wholesale Indexed Property Securities Fund 


New Objective 

To closely track the S&P/ASX 200 A-REIT 

Accumulation Index with the aim of generating 

returns (before tax and fees and assuming 

income is reinvested) comparable to the listed 

property sector of the Australian sharemarket, 

as measured by that benchmark. 

To closely track the S&P/ASX 200 A-REIT 

Accumulation Index with the aim of generating 

returns (before tax and fees and assuming 

income is reinvested) comparable to the listed 

property sector of the Australian sharemarket, 

as measured by that benchmark over rolling 

one year periods. 

Colonial First State Wholesale Indexed Global Share Fund 


New Objective 

To closely track the MSCI World (ex Australia) 



reinvested) comparable to the world 

sharemarkets as measured by that benchmark 

(unhedged). 





sharemarkets as measured by that benchmark 

(unhedged) over rolling one year periods. 

Colonial First State Wholesale Indexed Global Share Fund - Hedged 


New Objective


Index, hedged to Australian dollars, with the 

aim of generating returns (before tax and fees 

and assuming income is reinvested) 

comparable to the world sharemarkets as 

measured by that benchmark (hedged). 


Index, hedged to Australian dollars, with the 

aim of generating returns (before tax and fees 

and assuming income is reinvested) comparable 

to the world sharemarkets as measured by that 

benchmark (hedged) over rolling one year 

periods. 

Colonial First State Wholesale Indexed Australian Bond Fund 


New Objective 

To closely track the UBS Australian Composite 

Bond Index (All Maturities) with the aim of 

generating returns (before tax and fees and 

assuming income reinvested) comparable to 

the Australian bond market, as measured by 

that benchmark. 

To closely track the UBS Australian Composite 

Bond Index (All Maturities) with the aim of 

generating returns over rolling one year 

periods (before tax and fees and assuming 

income reinvested) comparable to the 

Australian bond market, as measured by that 

benchmark. 

Colonial First State Wholesale Indexed Global Bond Fund 


To closely track the Citigroup World 

Government Bond (ex Australia) Index 

(hedged) with the aim of generating returns 



government bond markets, as measured by 

that benchmark. 

New Objective 

To closely track the Citigroup World 

Government Bond (ex Australia) Index 

(hedged) with the aim of generating returns 



government bond markets, as measured by 

that benchmark over rolling one year 

periods. 

Wholesale Premium Cash Funds 

The following wholesale cash options had their investment objectives updated 

on 11 June 2013: 

Colonial First State Wholesale Premium Cash Fund 


To outperform (before tax and fees and 

assuming income as reinvested) the returns of 

Australian money markets as measured by an 

index of the Reserve Bank of Australia Cash 

Rate. 

New Objective 



Australian money markets over rolling two 

year periods as measured by the Reserve 

Bank of Australia Cash Rate. 

Colonial First State Wholesale Premium Cash Enhanced Fund 




Australian money markets as measured by an 

index of the UBS Warburg Australian Bank Bill 

Index. 

New Objective 



Australian money markets over rolling three 

year periods as measured by the UBS 

Warburg Australian Bank Bill Index.

Colonial First State Wholesale Funds APRA changes

Create successful ePaper yourself

Delete template?

Save as template?