Flagship CFS Geared Share fund reaches $10 billion milestone

• CFS Geared Share fund launched in 1997
  
• Fund delivered members 23.3% return over 12 months to 30 June 2024
• Fund delivered members 14.2% average annual return over 27 years

27 August 2024

Colonial First State (CFS) is pleased to announce that its CFS Geared Share fund has exceeded $10 billion in total funds under management (FUM), a major milestone for the 27-year-old investment option.

Launched in August 1997, the CFS Geared Share fund is one of the longest-running and top performing investment options available on FirstChoice, Edge and other leading platforms. 

The fund returned 23.3% over the year to 30 June 2024 and has achieved an average annual return of 14.2% since inception. 

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

Commenting on the milestone, CFS Executive Director, FirstChoice Peter Labrie said geared funds continue to play an important role within a diversified portfolio for members looking for 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 Labrie 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," he said. 

“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.”

The CFS Geared Share fund’s investment objective is to magnify long-term returns from capital growth by borrowing to invest in large Australian companies. It aims to outperform the S&P/ASX 100 Accumulation Index over rolling seven-year periods before fees and taxes. 

The fund generally invests in large, high-quality companies with strong balance sheets and earnings. The fund’s gearing effectively magnifies returns from the underlying investments, whether they are gains or losses. It predominantly invests in Australian companies and therefore does not hedge currency risk. 

CFS has expanded its suite of geared investment options in recent years, with the launch of the CFS Geared Index Australian Share fund and CFS Geared Index Global share fund in December 2021.