Drummond Capital Partners are pleased to partner with Colonial First State to offer an innovative managed account solution, tailored specifically for FirstChoice clients.
Utilising the institutional experience of Drummond’s investment team, systems and proprietary research, clients can access a diversified range of actively managed multi-asset portfolios incorporating our asset allocation expertise.
Leveraging the FirstChoice mandate structure, these portfolios contain an allocation to the Drummond Dynamic Plus Fund. This structure delivers our proven tactical asset allocation process, providing real time risk management and a smoother investment journey.
Allocating to a real return fund is an innovative way to provide diversified sources of returns across liquid markets such as equities, bonds, and credit as well as reducing drawdown risk through Drummond’s proven tactical asset allocation process. The inclusion of an allocation to the Dynamic Plus Fund achieves the following:
Incorporating a real return fund in the managed account is beneficial to advisors and their clients seeking the ability to manage market risk, by reducing overall portfolio volatility and managing drawdown risk.
In addition to the proven behavioural benefits of this strategy, we believe that financial outcomes of clients are better serviced by focussing on capital preservation.
By including a real return strategy within the managed account, portfolio changes that represent current market views can be made in real time, across all markets, in a more cost and tax effective manner.
This also alleviates the time required to implement trades and identify the best possible funds (if available) on the platform to express that view.
By incorporating a real return fund within the Drummond FirstChoice managed account, the portfolio becomes more diversified across asset classes, including less traditional ones that may not be accessible via the the existing options on FirstChoice.
In our view, portfolio diversity helps to drive better investment outcomes.
Drummond Capital Partners are a multi-asset investment manager providing institutional grade portfolio management under the transparent and efficient managed account structure. The firm was established in Melbourne in 2017 and is owned and managed by the investment team that has a combined 100+ years of investment experience.
At Drummond, we believe in the power of asset allocation as academic evidence shows this is the primary driver of long term returns. We invest considerable time and resources into both strategic and tactical asset allocation which combined with our proprietary manager research deliver high quality, risk aware portfolios.
The Drummond Investment Philosophy is centred around the belief that markets are not always efficient in the short term. By minimising potential for losses in weak periods, we believe the compounded growth will be superior over time, creating a better investment journey.
We believe in active management both at a portfolio level (tactical asset allocation) and within the asset classes, seeking to identify which sub-sectors have persistent opportunities for outperformance (alpha) and seeking to find those managers best positioned to generate alpha over time.
The assets you invest in drive the majority of portfolio returns over the long term. Our strategic asset allocation is developed via an iterative, multi-stage process anchored around two key processes:
Over shorter time horizons, opportunity exists to improve investor returns through active management by:
Manager selection is more nuanced than purely focusing on the best people and process on paper. We believe manager selection is a key area of alpha generation.
Our quantitative tools construct the optimal asset mix based on the specific risk and return objectives of each portfolio while our qualitative insight overlays this output with the experience of the investment team.
The benchmark for this portfolio is the FE AMI Mixed Asset Moderate Peer Group. Investors should consider the investment horizon to be at least 3 years. In general, the portfolio will have a long-term average exposure of around 70% to defensive assets (including fixed interest and cash) and 30% to growth assets (including shares, property, infrastructure, and alternatives). However, these allocations will be actively managed within the allowable ranges depending on market conditions.
The benchmark for this portfolio is the FE AMI Mixed Asset Balanced Peer Group. Investors should consider the investment horizon to be at least 5 years. In general, the portfolio will have a long-term average exposure of around 50% to defensive assets (including fixed interest and cash) and 50% to growth assets (including shares, property, infrastructure, and alternatives). However, these allocations will be actively managed within the allowable ranges depending on market conditions.
The benchmark for this portfolio is the FE AMI Mixed Asset Balanced Peer Group. Investors should consider the investment horizon to be at least 6 years. In general, the portfolio will have a long-term average exposure of around 40% to defensive assets (including fixed interest and cash) and 60% to growth assets (including shares, property, infrastructure, and alternatives). However, these allocations will be actively managed within the allowable ranges depending on market conditions.
The benchmark for this portfolio is the FE AMI Mixed Asset Balanced Peer Group. Investors should consider the investment horizon to be at least 7 years. In general, the portfolio will have a long-term average exposure of around 30% to defensive assets (including fixed interest and cash) and 70% to growth assets (including shares, property, infrastructure, and alternatives). However, these allocations will be actively managed within the allowable ranges depending on market conditions.
The benchmark for this portfolio is the FE AMI Mixed Asset Aggressive Peer Group. Investors should consider the investment horizon to beat least 9 years. In general, the portfolio will have a long-term average exposure of around 10% to defensive assets (including fixed interest and cash) and 90% to growth assets (including shares, property, infrastructure, and alternatives). However, these allocations will be actively managed within the allowable ranges depending on market conditions.
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