Jonathan Armitage

Colonial First State (CFS) has appointed J.P. Morgan Asset Management (JPMAM), a USD3.8 trillion global asset manager, as an underlying manager for the CFS Emerging Markets and CFS Global Shares strategies, both of which are multi-manager single sector options.

CFS’s multi‑manager funds are managed by specialist portfolio managers selected through a rigorous due‑diligence process that assesses performance capability, investment process and risk‑management discipline.

“Our decision to appoint J.P. Morgan Asset Management to manage allocations within our global and emerging markets equity options reflects their depth of research capability and disciplined investment approach. Their strategies provide access to high-conviction stock ideas supported by extensive on-the-ground insights and a robust global research platform. This appointment aligns with our commitment to delivering strong, risk-aware outcomes for our members,” said Jonathan Armitage, Chief Investment Officer at Colonial First State.

The JPMAM Global Select and Global Emerging Markets Analyst strategies provide access to top stock ideas, driven by on-the-ground market knowledge and the rigorous insights of 80 fundamental research analysts^[1]. They use a common valuation model that focuses on long-term fundamentals and cover over 2,500 stocks^[2].

“We are delighted to be appointed and appreciate the strong engagement with CFS throughout the process. It was important for us to showcase our core investment strategy, where stock-level decisions serve as the primary alpha driver. The depth and breadth of our research team is our key differentiator as a leading global active manager and we are proud to see our active equities platform grow to be a multi-billion dollar business through the support of our Australian clients^[2]. All of us at JPMAM are excited by the opportunity to further extend our partnership with CFS,” says Andrew Creber, Australia and New Zealand CEO, JPMAM.

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Notes:
[1] Source: J.P. Morgan Asset Management as at 31 March 2025
[2] Source: J.P. Morgan Asset Management as at April 2025

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Jonathan Armitage

Colonial First State (CFS) has announced double digit returns over the year to 30 June 2024 for members of its MySuper balanced and growth funds.

This marks the second consecutive year that CFS has delivered double digit returns for these MySuper members.

The FirstChoice Employer Super balanced fund (MySuper Lifestage 1965-69) delivered a 12.1% return, while the FirstChoice Employer Super growth fund (MySuper Lifestage 1975-79) delivered a 14.3% return.

“We are very pleased to announce that CFS has continued to deliver strong returns for its members over the year to 30 June. This is the second consecutive year that members of our MySuper balanced and growth funds have seen double-digit returns,” said Kelly Power, Chief Executive Officer of Colonial First State Superannuation.

“CFS continues to gain momentum as a leader in the Australian superannuation market by delivering strong returns for our customers, market-leading investment choice and annual fees that are 15 per cent lower than the average MySuper fund.”

Jonathan Armitage, Colonial First State’s Chief Investment Officer, said the strong investment performance over the 12 months to 30 June has largely been driven by strong returns in global and domestic equities.

“The strength of global share markets has really been the core driver of investment returns over the last 12 months. CFS is also in the relatively unique position of holding no legacy unlisted assets. In an environment of higher interest rates, this has allowed us to deliver another year of solid returns for members,” Mr Armitage said.

“Looking ahead, we continue to believe that inflation data will be volatile, keeping interest rates higher for longer and creating continued headwinds for some sectors such as commercial real estate.

“Managing the evolving macro-economic environment will also be paramount over the coming year and we look forward to again delivering strong returns for members through our disciplined investment approach in FY25.”

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*Chant West Super Fund Fee Survey as at 30 June 2023 for MySuper products based on $50,000 account balance

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Jonathan Armitage

One of Australia’s largest pension payers, Colonial First State (CFS), has shed light on how financial advisers are helping clients through the current period of market volatility.

Speaking at an event attended by more than 400 CFS superannuation members and advisers, recently appointed CFS Chief Investment Officer, Jonathan Armitage and Executive Director Technical Services, Craig Day led a panel discussion on investing for retirement, covering a range of macroeconomic trends and showcasing strategies financial planners are using to protect clients in the pre or post retirement phases of their lives.

“While the world has experienced an extraordinary period of economic growth and subsequent strong investment returns over the past 30 years, this year we’ve seen a confluence of issues impact superannuation performance,” said Mr Armitage.

“The pandemic, tragic events in Ukraine, supply chain disruptions and a range of other geopolitical issues have led to a rise in inflation and interest rates, creating a period of significant market volatility,” he said.

“Our primary message to both advisers and members is to maintain a long-term view of investments.”

“Our research shows that if members had, for example, moved money from shares and bonds to cash during the GFC period, their super balance would have been significantly lower today in comparison to the amount they would have accumulated had they stayed invested in their original portfolio (see chart below).

“While it might feel tense during periods of market volatility, markets do recover and it’s important that members think about taking advantage of that,” said Mr Armitage.

Take advantage of growing returns in the fixed income securities market

Mr Armitage noted that during the recent long period of low interest rates, income generating assets – which are critical in the retirement phase – had been difficult to find.

“While we’ve seen some sharp adjustments from a return perspective, we’re now starting to notice fixed income securities produce returns which allow retirees to have a reasonable level of income,” Mr Armitage said.

“There will be bumps along the way but we’re seeing a normalisation of interest rate policies feeding into fixed income securities, giving advisers an opportunity to consider resetting client portfolios to take advantage of that,” he added.

Build a buffer to reduce longevity risk

Mr Day addressed a key concern of many superannuation members in running out of money and being dependent on the age pension during their retirement years.

“Termed longevity risk, this is where people potentially outlive their life expectancy and exhaust their retirement savings,” Mr Day said.

“In this case, it’s important to remember life expectancy figures are averages which means half the population will outlive their life expectancy. Life expectancy also generally improves over time with advancements in health and medical science. A good adviser will factor all this in when determining retirement income levels, to minimise the risk of their client outliving their savings.”

Prioritise mortgage over super

Mr Day went on to explain that great outcomes for super fund members are not just about investment returns – there are other strategies that can be employed.

“A question I’m often asked is whether to allocate surplus cash flow in the lead up to retirement to paying off the mortgage or building a super balance,” Mr Day said.

“From a straight numbers perspective, people are generally better off targeting their mortgage first. In addition, there has been lots of studies that show that home owners generally get better outcomes in retirement. Owning a home outright at or near retirement is also very important as it provides the flexibility for members to adopt a super-boosting strategy, such as downsizing their home or increasing their contributions as part of a transition to retirement plan.”

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Kelly Power

Australian wealth management group Colonial First State (CFS) last night hosted a special event in Sydney to help superannuation fund members make sense of recent challenges in the economy and financial markets so they can make informed decisions about their long-term superannuation strategies.

Hosted by CFS Chief Distribution Officer, Bryce Quirk, the event for members and their financial advisers, included practical and informative sessions with industry experts from CFS.

Chief Executive Officer of CFS Superannuation, Kelly Power, reminded members of the importance of staying focused on the bigger picture with their superannuation.

“Super is a long-term investment and there will be ups and downs along the way. Markets have and will continue to fluctuate over time and as investment professionals with decades of experience, we aim to look through the short-term volatility to provide members with strong, long-term returns,” Ms Power said.

Attendees heard from one of Australia’s leading economic visionaries, Managing Director, Market Economics, Stephen Koukoulas on the once-in-a-lifetime economic changes that investors are experiencing and what these changes mean for investors.

CFS’s new Chief Investment Officer, Jonathan Armitage discussed investing for retirement with Craig Day, Executive Director Technical Services.

“CFS has been helping retirees, superannuation members, and investors plan for a better financial future for more than 30 years. As we look to the future, we’ll continue to invest in our capabilities, and maintain a focus on keeping fees competitive while offering great returns,” added Ms Power.

Practical seminars

Additional panel sessions at the event explored strategies that could help members maximise their funds for retirement and understand their retirement income options including allocated pensions and annuities, making super last, and qualifying for the age pension.

Members without a financial adviser were also invited to learn more about how financial advice works, how to get the most out of the financial planning process, and how it could help their reach their retirement goals.

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Jonathan is a highly regarded investments executive with nearly 30 years of global experience, having worked in Australia, the United Kingdom and United States. He has a strong reputation as a leader in asset management, and his appointment means CFS is well positioned to further improve product performance and deliver the best outcomes for members. Jonathan will commence in August.

Ms Power said, “We are pleased to have Jonathan on board. Jonathan has a breadth of experience in Australia and globally including directly running investment portfolios. His strong skill set, global asset management experience, and track record of success, will help us to deliver market leading investment performance for members in the future.

“Jonathan’s appointment further strengthens our investments team capabilities and, with other changes we have made, is helping to make CFS one of the most competitive retail superannuation and investments businesses in Australia.”

Most recently Jonathan was the Chief Investment Officer and General Manager of Asset Management at MLC. His responsibilities included managing multi-asset diversified funds, fixed income, private equity and alternative capabilities. He joined MLC in August 2011 as Head of Global Equities, before becoming Head of Equities in December 2011 and being appointed Chief Investment Officer in March 2013.

Prior to MLC, Jonathan spent 20 years at Schroders, where he held roles including Head of US Equities and Deputy Head of Global Equities.

After more than 30 years with CFS, Scott Tully felt that the time was right to pursue the next phase of his career outside of CFS.

“We greatly appreciate Scott’s contribution to CFS over many years, the way he has led his teams, and his commitment to our members. We wish him all the very best for the future,” Ms Power said.

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Rachael Lockyer

MLC Asset Management has announced the appointment of Kristian Zimmermann as the Co-Head of Private Equity, in a move that will further strengthen MLC’s Private Equity offering.

Mr Zimmermann brings over 20 years of global experience and joins from Temasek in Singapore, where he was a senior director and Head of the Investment Review team. He has previously held senior roles at Commonwealth Bank of Australia, Macquarie Bank, Deutsche Bank and Merrill Lynch.

In his new role at MLC that will commence in mid-June, Mr Zimmermann will work alongside New York-based Co-Head Marek Herchel.

Commenting on the appointment Mr Herchel said: “Kristian brings extensive experience and a complementary skillset to the role, which will further support the development and growth of MLC Private Equity.”

Mr Herchel will continue to drive the investment agenda globally, while Mr Zimmermann will focus on growing the Australian business and on delivering MLC’s PE capability to a broader range of clients.

MLC CIO, Jonathan Armitage, said Mr Zimmermann’s appointment added further depth and expertise to MLC’s existing Private Equity team.

“Kristian’s impressive, wide-ranging international expertise together with his experience in leading a team that looked at a wide range of unlisted assets such as private equity, direct property and infrastructure, as well as listed equity and fund investments means he is a great fit for this role. With Kristian onboard and working alongside Marek Herchel we look forward to seeing continued growth of the MLC PE business,” Mr Armitage said.

Mr Zimmermann’s appointment follows Rachael Lockyer, who joined earlier this year as Portfolio Manager within the MLC Private Equity team. Ms Lockyer brings over 14 years’ experience and strong PE expertise, having previously worked at L Catterton and Ironbridge Capital.

“Rachael brings deep, hands-on private equity investment experience to the role and has hit the ground running since joining in late March,” Mr Armitage said.

Strong track record and exciting trajectory

Launched in November 2019, MLC Private Equity Co-investment Fund III has recently completed its second close with $147m in committed capital to date. From this capital, the team have made the Fund’s initial three investments.

“We are pleased with the strong level of interest in Fund III. Strong exits from Fund I and early successes in Fund II have demonstrated the team’s industry-leading expertise,” Mr Armitage said.

Fund II (launched in 2017) has exited the first 2 of its 21 investments. The first was a European business services company which generated a 3.3x return. The Fund recently also exited its investment from an American data analytics company, which returned 2.9x capital to investors.

Fund I (launched in 2013) has exited nine of its 14 investments and has to date delivered investors an IRR net of all fees of 20.6% since inception (target of 15%) and achieved a gross multiple on invested capital of 3.0x to the same date. This performance ranks the Fund among the top quartile of buyout-focused PE funds surveyed by Cambridge Associates from the 2013 vintage globally.

“As one of the most established global PE programs, and with an outstanding track record of performance spanning over 20 years, we are well positioned to execute on our strong growth agenda,” Mr Armitage said.

MLC Private Equity manages in excess of $5b in FUM.

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Jonathan Armitage

MLC has changed its MySuper investment option to reflect member needs based on life stage.

Members invested in the current MySuper investment option, which has a 70 per cent growth/30 per cent defensive asset allocation, will be moved to the new MySuper where:

Members aged under 55 will now have a long-term allocation of 85 per cent growth assets and 15 per cent defensive assets. This provides them with greater opportunities for financial growth considering the

• longer time they have to retirement age.
• Members approaching retirement (55-64 year olds) will have their growth assets gradually reduced and have their defensive assets increased.
• Members aged 65 and over will have their balance maintained at a long-term allocation of 70 per cent growth assets and 30 per cent defensive assets.

Helen Murdoch, GM of Corporate Super said the changes enable MLC to cater to member needs at different stages in their life and work journey.

“Our focus continues to be on providing support for almost 600,000 of our members to achieve long-term benefits and sustainable growth. With that in mind, we engaged with our various stakeholders to receive their feedback and conducted detailed modelling and extensive analysis of the changing default super landscape.

“Our research* shows that 40 per cent of Australians have never reviewed their super fund strategy to ensure it’s right for them. Moreover, 73 per cent of Australians do not know the right risk profile for their age but 66 per cent would change their asset allocation if they knew they were missing out on tens of thousands in retirement savings.”

“The changes we introduced will help our members invest in higher growth investments when they’re younger which gives their super more of an opportunity to grow. At the same time as delivering growth opportunities, we have looked to reduce the impact of potential adverse market movements as members approach retirement age,” added Murdoch.

“We will maintain the underlying MySuper investment philosophy. We will also continue to leverage our in-depth expertise in multi-asset investing to achieve better performance outcomes for our members while maintaining a strong focus on risk management,” said Jonathan Armitage, GM Asset Management and Chief Investment Officer.

The transition of all members invested in the current MySuper to the new updated MySuper was completed between 22-25 March. All assets invested in the current MySuper were transitioned at the same time with no transaction cost to members.

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Jonathan Armitage

MLC has been awarded the highest rating – ‘5 Apples’, by independent research house ChantWest for the 9th consecutive year. This rating assesses MLC’s ability to construct quality multi-manager investment products.

MLC CIO Jonathan Armitage said, “We are pleased to once again be awarded ChantWest’s highest overall rating. It shows ongoing support for our range of multi-manager solutions including our retirement focused MLC Inflation Plus portfolios, and our dynamic investment philosophy and robust portfolio construction process that we have built over the past 25 years.

“Contributors to the solid rating include a strong, stable senior management and portfolio management team, extensive experience in managing multi-manager portfolios and high quality research resources.”

ChantWest identified the MLC flagship ‘Horizon 4 – Balanced’ fund, specifically its return of 6.8% per annum for the 10 years to June 2014 (after investment fees and tax) as a key performer. They also highlighted the focus on the research and portfolio construction process undertaken by MLC’s Head of Investments, Susan Gosling and her Capital Markets Research team as a major strength as well as the work done by the broader JANA Investment team.

MLC Investments currently offers 25 retail multi-manager investment funds, 13 of which are diversified investment funds and 12 asset sector funds.

Access to MLC investment products is available via direct investment or through MLC MasterKey, MLC Wrap and Navigator and most major platforms.

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In a telephone conference with several hundred financial advisers, MLC informed advisers that active managers with strong investment processes and strong investment discipline, are more likely to pick up stocks at very attractive prices relative to their medium-term growth
opportunities.

Jonathan Armitage, MLC’s Global equity portfolio manager said: “It’s times like this, where we continue to witness not just market volatility but individual stock volatility, that the critical role of an active manager, in producing strong returns, becomes really clear.

“If you look at the top 10 moves in the Dow Jones index since it was created in its current form back in the 1920’s, over that period, four of them have happened in the last two weeks.

“In the same two week period, we have also seen our managers, some of whom have been holding quite high cash positions which has held them in very good stead in the recent volatility, put that money to work and invest in some high quality stocks,” said Mr Armitage.

“Interestingly, last week we saw a surge in insider buying, not seen since March 2009. It was reported that 50 managers in over 60 companies in the US bought stock in their own companies, last week.

“The point is that an active manager will use this period of uncertainty and volatility to pick up very high quality stocks at what should prove to be extremely attractive valuations for the medium term,” he said.

MLC also launched a brand new online Market Volatility Toolkit, built in response to the market volatility of the last two weeks, which supports financial advisers have conversations with their clients during these uncertain times and provides them with a range of useful tools and the
latest information.

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