Less than three months on from the last expansion, Colonial First State (CFS) has added the Sandstone Income Portfolio, managed by MST Financial, to the CFS Edge platform, building on its existing menu of more than 170 managed accounts.
The professionally managed portfolio gives investors access to a diverse mix of credit and income assets, which CFS said would support advisers in “transitioning clients from legacy hybrid holdings” in addition to being a valuable entry-level option for those new to income investing.
CFS executive director of managed accounts Frances Taylor suggested that this new portfolio would support advisers’ needs through shifting markets.
“The Sandstone Income Portfolio is designed to provide a timely and strategic income solution for advisers and clients navigating the evolving fixed income landscape, particularly as the phase-out of traditional hybrid securities reshapes income investing in Australia,” Taylor said.
“The team at MST Financial are well known as specialists in this space and we are delighted to be working with them.”
Furthermore, the firm explained that, as bank hybrids are gradually redeemed over the next seven years, replacement securities will be strategically selected so as to not degrade the level of credit quality and liquidity while also avoiding more risky or illiquid credit-based assets.
Noting the depth of knowledge and experience of those managing the portfolio, MST Financial chief executive Gerard Satur said the firm is pleased to partner with CFS and provide more advisers access to their investment solution.
“Having industry veterans like Cameron Duncan and Steve Anagnos leading our income team provides us with the ability to leverage their deep experience to be able to construct a portfolio that is appropriate and ideally suited to investors seeking stable income with a high degree of capital preservation,” Satur said.
This follows CFS’ announcement in March introducing new international managed accounts from Franklin Templeton, Watershed and global equity investment specialist Walter Scott on the Edge platform in response to rising adviser demand for global investment opportunities.
At the same time, the firm also unveiled new managed accounts from CFS Investments and Innova Asset Management on the Accelerate Series menu, expanding access for advisers and clients at a variety of price points.
