The CFS Wellington Global Small Companies Fund will be launched across its FirstChoice and Edge platforms and is designed to provide investors with long-term capital growth from global equities.
It aims to outperform the MSCI World Small Cap Net Index over rolling three-year periods (before fees and taxes), leveraging Wellington’s multidisciplinary approach to identify undervalued, high-quality companies with sustained growth potential.
CFS and US-based Wellington Management, which will be the fund’s investment manager, have worked together for 20 years, and Wellington is a CFS alliance partner. Other funds run by Wellington include the CFS Wellington Global Health and Biotechnology and the CFS Wellington Global Technology and Communication.
Wellington has $1.9 trillion in assets under management and began operating in Australia in 1997.
CFS group executive for distribution, Bryce Quirk, said: “We are pleased to once again be working with an investment partner of Wellington’s calibre to launch a new fund at a pivotal time in global markets.
“Historically, global small caps have delivered greater returns despite higher volatility, making them a valuable addition for investors seeking long-term growth and diversification. The fund offers financial advisers and the clients they support access to a vast investment universe, where fundamental research can identify quality companies and provide a source of alpha.”
Caitlin Hollebone, head of the Australian office of Wellington Management, said: “We are excited to launch the CFS Wellington Global Small Companies Fund together with CFS, and be recognised as a CFS alliance partner, building upon our relationship that spans more than 20 years.
“Global small caps have been overlooked for years, and with the attractive growth potential at today’s compelling valuations, we believe we can deliver something truly differentiated to the broader wholesale adviser market by combining our institutional research and risk management capabilities with CFS’s strengths across distribution, administration, and marketing.”
Earlier this year, BT appointed Wellington to launch the Global Opportunistic Value Fund for Australian financial advisers. BT’s global equities contrarian value fund is described as an all-cap global equity strategy with high active share that favours shares with low momentum, low price to earning and price to book characteristics.
Meanwhile, Vanguard also announced a strategic alliance with Wellington and alternatives manager Blackstone to broaden access to multi-asset portfolios. This would see the three firms collaborate on developing simplified multi-asset investment solutions that seamlessly integrate public and private markets, as well as active and index strategies.
