Colonial First State Multi-Asset Real Return Fund — Class A aims to deliver an investment return of 4.5% pa above inflation over rolling five-year periods before fees and taxes. Inflation is defined as the Australian Consumer Price Index (CPI) Trimmed Mean Index, as published by the Australian Bureau of Statistics. The option’s investment strategy is objective based, and implemented through a dynamically managed investment portfolio across asset classes in order to maximise the likelihood of achieving the real return objective whilst minimising deviations from that target. The investment approach allows the portfolio to respond to changing market environments, both capturing opportunities and containing risks relative to the objective. Derivatives may be used for risk management or return enhancement. The option may hedge some or all of its currency exposure.
The First Sentier Multi-Asset Real Return Fund posted a return of 3.69% (net of fees) for the second quarter of 2023, outperforming inflation (Australian CPI Trimmed Mean) by 2.39%. The most recent quarterly CPI print in Australia was 1.2% quarter-on-quarter (6.6% annualised) for March 2023.
Within our investment process we have two building blocks. The first, which we call Neutral Asset Allocation (NAA), sets longer-term asset allocations. The second part, which we call Dynamic Asset Allocation (DAA), allows us to exploit shorter-term opportunities and better manage portfolio risk. The NAA is expected to deliver the majority of performance over the investment horizon, although this will vary over short-time periods such as one month.
The NAA provided a positive performance contribution as equities (0.4%), corporate bonds (0.3%) and government bonds (0.5%) rose over the quarter, while commodities detracted 0.2%.
DAA positions added (0.2%) over the quarter.
During the quarter, the portfolio held hold protective put options on the S&P 500 to mitigate drawdowns in a significant sell-off. In addition, we also held call options to enable the portfolio to participate in and benefit from a market rally, without taking downside risks. These positions added 0.5% and were closed during the quarter.
What is Colonial First State Multi-Asset Real Return Fund — Class A Colonial First State Multi-Asset Real Return Fund — Class A is an Managed Funds investment product that is benchmarked against Multi-Asset Growth Investor Index and sits inside the Multi-Asset - Real Return Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Colonial First State Multi-Asset Real Return Fund — Class A has Assets Under Management of 15.93 M with a management fee of 0.81%, a performance fee of 0.00% and a buy/sell spread fee of 0.39%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Colonial First State Multi-Asset Real Return Fund — Class A has returned 0.38% in the last month. The previous three years have returned 4.16% annualised and 5.37% each year since inception, which is when the Colonial First State Multi-Asset Real Return Fund — Class A first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Colonial First State Multi-Asset Real Return Fund — Class A first started, the Sharpe ratio is 0.47 with an annualised volatility of 5.37%. The maximum drawdown of the investment product in the last 12 months is -3.67% and -11.49% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Colonial First State Multi-Asset Real Return Fund — Class A has a 12-month excess return when compared to the Multi-Asset - Real Return Index of 2.23% and -1.17% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Colonial First State Multi-Asset Real Return Fund — Class A has produced Alpha over the Multi-Asset - Real Return Index of 0.18% in the last 12 months and -0.11% since inception.
What are similar investment products?
For a full list of investment products in the Multi-Asset - Real Return Index category, you can click here for the Peer Investment Report.
What level of diversification will Colonial First State Multi-Asset Real Return Fund — Class A provide?
Colonial First State Multi-Asset Real Return Fund — Class A has a correlation coefficient of 0.88 and a beta of 1.09 when compared to the Multi-Asset - Real Return Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on Colonial First State Multi-Asset Real Return Fund — Class A and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Colonial First State Multi-Asset Real Return Fund — Class A with the Multi-Asset Growth Investor Index?
For a full quantitative report on Colonial First State Multi-Asset Real Return Fund — Class A compared to the Multi-Asset Growth Investor Index, you can click here.
Can I sort and compare the Colonial First State Multi-Asset Real Return Fund — Class A to do my own analysis?
To sort and compare the Colonial First State Multi-Asset Real Return Fund — Class A financial metrics, please refer to the table above.
Has the Colonial First State Multi-Asset Real Return Fund — Class A been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Colonial First State Multi-Asset Real Return Fund — Class A?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Colonial First State Multi-Asset Real Return Fund — Class A. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - March 31, 2023 The First Sentier Multi-Asset Real Return Fund posted a return of 1.91% (net of fees) for the first quarter of 2023, outperforming inflation (Australian CPI Trimmed Mean) by 0.30%. The most recent quarterly CPI print in Australia was 1.7% quarter-on-quarter (6.9% annualised) for December 2022.
Within our investment process we have two building blocks. The first, which we call Neutral Asset Allocation (NAA), sets longer-term asset allocations. The second part, which we call Dynamic Asset Allocation (DAA), allows us to exploit shorter-term opportunities and better manage portfolio risk. The NAA is expected to deliver the majority of performance over the investment horizon, although this will vary over short-time periods such as one month.
The NAA provided a positive performance contribution as equities (1.6%), corporate bonds (0.4%) and government bonds (0.3%) rose over the quarter. DAA positions added (0.1%) over the quarter.
Performance Commentary - December 31, 2022 The First Sentier Multi-Asset Real Return Fund posted a return of 4.01% (net of fees) for the fourth quarter of 2022, outperforming inflation (Australian CPI Trimmed Mean) by 2.05%. The most recent quarterly CPI print in Australia was 1.8% quarter-on-quarter (6.1% annualised) for September 2022. Within our investment process we have two building blocks.
The first, which we call Neutral Asset Allocation (NAA), sets longer-term asset allocations. The second part, which we call Dynamic Asset Allocation (DAA), allows us to exploit shorter-term opportunities and better manage portfolio risk. The NAA is expected to deliver the majority of performance over the investment horizon, although this will vary over short-time periods such as one month. The NAA provided a positive performance contribution as equities (2.5%), corporate bonds (0.8%) and commodities (0.3%) rose over the quarter. DAA positions added (0.3%) over the quarter.
Performance Commentary - September 30, 2022 The First Sentier Multi-Asset Real Return Fund posted a return of -0.20% (net of fees) for the second quarter of 2022, underperforming inflation (Australian CPI Trimmed Mean) by -1.63%. The most recent quarterly CPI print in Australia was 1.5% quarter-on-quarter (4.9% annualised) for June 2022. Within our investment process we have two building blocks. The first, which we call Neutral Asset Allocation (NAA), sets longer-term asset allocations.
The second part, which we call Dynamic Asset Allocation (DAA), allows us to exploit shorter-term opportunities and better manage portfolio risk. The NAA is expected to deliver the majority of performance over the investment horizon, although this will vary over short-time periods such as one month. The NAA provided a negative performance contribution as equities (-0.6%) and commodities (-0.3%) fell over the quarter, while corporate bonds were a positive contributor (0.3%) as corporate spreads to government compressed. DAA positions added (0.3%) over the quarter.
Performance Commentary - June 30, 2022 The First Sentier Multi-Asset Real Return Fund posted a return of -5.06% (net of fees) for the second quarter of 2022, underperforming inflation (Australian CPI Trimmed Mean) by -5.42%.
The most recent quarterly CPI print in Australia was 1.4% quarter-on-quarter (3.7% annualised) for March 2022. Within our investment process we have two building blocks. The first, which we call Neutral Asset Allocation (NAA), sets longer-term asset allocations. The second part, which we call Dynamic Asset Allocation (DAA), allows us to exploit shorter-term opportunities and better manage portfolio risk.
The NAA is expected to deliver the majority of performance over the investment horizon, although this will vary over short-time periods such as one month. The NAA provided a negative performance contribution as equities (-4.2%), corporate bonds (-0.3%) and commodities (-0.8%) fell over the quarter. DAA positions detracted from performance (-2.0%) over the quarter, which was driven be preferred exposure global equities such as the US and India.
Performance Commentary - March 31, 2022 The First Sentier Multi-Asset Real Return Fund posted a return of -3.25% (net of fees) for the first quarter of 2022, underperforming inflation (Australian CPI Trimmed Mean) by -4.62%. The most recent quarterly CPI print in Australia was 1.0% quarter-on-quarter (2.6% annualised) for December 2021.
Within the fixed income allocation, the fund experienced negative returns in the Neutral Asset Allocation (NAA), detracting 86 basis points in total. The performance was attributable to an increase in rates and steepening of global yield curves, driven by the growing expectations that the US Federal Reserve will continue to raise rates at a steady pace. The larger detractors were positions held in French, US and Australian government bonds. The negative returns from fixed income assets were contained as we reduced duration exposures across both the neutral and dynamic asset allocations over the period. Within equities, the asset class as a whole detracted just over 254 basis points from performance. Active DAA exposures detracted 140 basis points of that performance, largely driven by exposure to US and Swedish equity markets. Active positions in Hong Kong provided a positive contribution of 17 basis points.
Within the NAA, US exposures were the largest negative contributors detracting over 83 basis points. Protective put options on the S&P 500 are also held in the portfolio to mitigate drawdowns in a significant sell off and these added 23 basis points over the period. Foreign currency exposure within the portfolio remained relatively stable over the quarter at 32%, in line with the global equity exposures within the NAA. The reductions implemented at the time of the last semi-annual review in Q4 2021 minimised the impact from foreign exposures, as the Australian dollar strengthened by 3% over the quarter, from 72.8 US cents to 75 US cents.
Performance Commentary - December 31, 2021 The Fund provides exposure to a diverse range of investment types, allocating across a number of asset classes within the one portfolio.
Performance Commentary - June 30, 2021 The CFS Multi-Asset Real Return Fund posted a return of 4.75% (net of fees) for the second quarter of 2021, outperforming inflation (Australian CPI Trimmed Mean) by 4.44%. The most recent quarterly CPI print in Australia was 0.3% quarter-on-quarter (112% annualised) for March 2021. Within the fixed income allocation, the fund delivered positive returns in the Neutral Asset Allocation (NAA) and in the Dynamic Asset Allocation (DAA) portions of the portfolio, adding 21 bps in total. The positive performance was attributable to a general decrease in rates, driven by a softening in inflation and growth expectations globally. The larger positive contributors to excess returns from active DAA tilts were well timed positions held in Canada and US government bonds futures, while the US and Australia were the largest contributors in the NAA.
Within equities, the asset class as a whole add just under 363 basis points to performance. Active DAA exposures added roughly 114 basis points of performance, largely driven by exposure to Switzerland and Australia. Japan and Turkey were a slight detractors from returns. In the NAA, Australia and the US were the largest contributors as they are structurally the largest allocations within the NAA. There were no equity based protection strategies undertaken within the portfolio. Foreign currency exposure within the portfolio increased over the quarter to around 44%. However, as the Australian dollar declined by 2.6% over the quarter, from 77.0 US cents to 75.0 US cents, the foreign exposures contribute about 76 basis points to the fund.
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