Colonial First State adds T. Rowe Price’s Australia Equity Strategy to the FirstChoice Platform


Randal Jenneke

T. Rowe Price’s Australia Equity Strategy has been added to Colonial First State’s FirstChoice investment menu to provide an investment choice suited for the current environment where investors seek strong risk adjusted returns from genuine active management at attractive fees.

Led by the firm’s Head of Australian Equities, Randal Jenneke, the strategy provides investors with access to a high conviction portfolio that seeks to identify high quality growing companies with positive structural industry dynamics, strong competitive positions and which can sustainably grow at attractive rates of return.

The strategy relies on extensive proprietary fundamental research by an experienced Australian equity investment team that collaborates with and draws insights from the T. Rowe Price global research platform. It is the second T. Rowe Price strategy available on the FirstChoice platform after the firm’s Global Growth equity offerings was added in May 2016.

“Active management is critical to generating attractive return potential, particularly in a more volatile market environment. Our quality growth framework and valuation discipline helps to identify companies that have the potential to grow faster than the market with an attractive rate of return, but also importantly offers downside capital management, due to lower drawdowns in periods where the equity market sells off. We are delighted that more Australian investors can co-invest with us and our world class globally integrated research platform,” Jenneke said, adding that he remains optimistic on the outlook for Australian Equities.

“We believe it’s very important for advisers and investors to review their Australian equity managers’ ability to meet their stated objectives both now and in the long run. Investors should determine if what they invested into 10 to 15 years ago is considerably different to what they originally bought as a consequence of significant asset gathering. A strong discipline to capacity management, as is the approach taken by our strategy, helps to mitigate these issues,” said Murray Brewer, T. Rowe Price Head of Relationship Management Australia and New Zealand.

T. Rowe Price’s Australia equity strategy has successfully raised over A$1.2billion in assets under management from Australian sourced clients. The firm manages assets of over A$1.32 trillion globally. Its range of other equity and fixed income strategies across multiple asset classes throughout the developed, emerging and frontier markets; the Global Equity Strategy (Hedged and Unhedged), Dynamic Global Bond Strategy, and the Asia ex-Japan Strategy offerings are available for financial advisers in Australia.

The firm has been steadily building its Australian business aligning its growth focus with its founding principle of putting clients first and constructing investment solutions that draw on the firm’s deep local and global investment capabilities.

Most recently, T. Rowe Price’s Australian operations have been granted an Australian Financial Services License (AFSL) and have commenced trading as T. Rowe Price Australia Limited, effective 1 May. The move will enable the firm to access new market segments and develop new products for its growing client base, reflecting the firm’s continued commitment to the Australian market.

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