CFS Edge expands menu with new international managed accounts

Colonial First State (CFS) has unveiled an expanded investment menu on the CFS Edge platform which will now include international signature managed accounts.

The international signature managed accounts on CFS Edge are expected to cut through the complexity of international equity trading and foreign exchange management with the use of innovative currency wallet technology to support advisers to transact and invest in a dozen currencies. 

They are aimed to support advisers’ access to international markets through global equity managers T. Rowe Price, Lazard Asset Management, ClearBridge, and CBRE Investment Management. 

“CFS Edge was designed with managed accounts at its core. These new options give advisers and their clients easy direct access to global markets while benefiting from the efficiency of a managed account structure,” explained Bryce Quirk, group executive for distribution at CFS. 

There are now more than 150 managed accounts on CFS Edge and over $14 billion is invested in CFS managed accounts across the Edge and FirstChoice platforms.

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Highlighting the global opportunity with international signature managed accounts, CFS pointed out that most of the world’s investable markets are outside Australia, with Australia comprising just 2.5 per cent of global markets. 

With this, client portfolios focusing entirely on the domestic market may be missing out on some of the world’s best investment opportunities. 

“Advisers and their clients benefit from true diversification by spreading risk across different countries, sectors and asset classes,” pointed out Frances Taylor, executive director of managed accounts at CFS.

T. Rowe Price’s head of intermediary sales for Australia, Jonathon Ross, added that the global asset manager is thrilled to extend its investment capabilities to more Australian investors through the platform.

“Our successful track record in the global equity SMA space has demonstrated the value we bring to investors, and we welcome the opportunity to make our strategies more accessible,” Ross said.

In a white paper ahead of the launch, CFS described managed accounts as a “game changer” for both licensees and clients arising from combining the efficiency of a managed accounts structure with some of the world’s leading portfolio managers. 

In particular, CFS noted that over 80 per cent of advisers using managed accounts said it provided benefits to their value proposition, while just under half (48 per cent) said they had a greater focus on client goals. 

“By offering clients global diversification through international managed accounts, they have wider access to growth opportunities,” CFS said.

It also highlighted the time-saving benefits of managed accounts, freeing up advisers towards other activities to attract new high-net‑wealth clients seeking global investment opportunities.

Separately, CFS also announced the expansion of the CFS Edge Accelerate Series menu, which will now include new portfolio managers AZ Sestante, InvestSense and Mercer, and the introduction of 21 new managed accounts. 

The Accelerate Series, a full-service managed account solution, enables advisers to blend low-cost solutions with sophisticated investment options in a single account, allowing them to service different client segments from a single platform.

A number of the new options on the Accelerate Series will also be made available on the FirstChoice platform to provide greater flexibility and choice to advisers and their clients. 

Additionally, CFS confirmed new managed account options with four new CFS Dynamic portfolios holding a four-star SQM rating and an expansion of the CFS Index portfolios with additional risk profiles.

CFS Edge crossed $1 billion in funds under administration in May this year, having launched in August 2023.