Investment philosophy
Colonial First State Global Asset Management seeks to deliver superior risk-adjusted returns from its range of multi-sector portfolios over their investment timeframes. These portfolios invest across multiple sources of risk and return, with the allocations to underlying sector exposures determined on a strategic basis relative to the objectives of each portfolio.
Investment process
Our suite of multi-sector funds span a range of risk/return profiles. The strategic asset allocation for each fund is established following a detailed analysis, both quantitative and qualitative, over various timeframes. A key consideration is the alignment with each portfolio's investment objectives over the relevant investment horizon, as well as the potential for adverse return outcomes over shorter periods.
Once the strategy is determined, each fund obtains its exposure to the underlying sectors (equities, property securities, fixed interest and cash) by investing into a range of sector-specific wholesale funds. The portfolio construction and underlying exposures are specific to the risk profile and objectives of each fund. In each case, the goal is to maximise the return per unit of risk relative to the strategic allocation that has been determined.
In keeping with our strategic approach, we rebalance the portfolios regularly to ensure that unintended risk arising from asset allocation deviations away from benchmark are effectively managed relative to the costs of rebalancing.
Each fund's portfolio construction is reviewed on a regular basis to ensure it remains appropriate to the investment objectives.
