Lonsec Initiates Rating for Colchester Emerging Markets Bond Fund, Continues Strong Conviction in Flagship Global Government Bond Fund

Lonsec has recently released its first rating report for the Colchester Emerging Market Bond Fund, awarding it a RECOMMENDED rating. Lonsec say it has ‘strong conviction’ the Fund ‘can generate risk adjusted returns in line with relevant objectives’. Lonsec also highlighted the ‘strong alignment of interests with investors’ managed by a ‘specialist investment team led by highly experienced Portfolio Managers’.

This rating adds to the RECOMMENDED rating awarded by Zenith in February this year, where it considers the Fund ‘to be an attractive specialist exposure’ in the international fixed interest sector ‘for those seeking a higher yielding and uncorrelated return stream’.

Colchester’s Head of Distribution for Australia, Angela MacPherson, said ‘I am very pleased to have both key research firms reinforce the Fund’s credentials as the market is crying out for yield options, and this Fund has high coupons which are distributed every quarter, attractive diversification and return characteristics, and most importantly, has proven liquidity through market stress’.

At the same time Colchester’s flagship vehicle, the Colchester Global Government Bond Fund, retained its HIGHLY RECOMMENDED rating from Lonsec for the 4th year in a row.

‘These consistently strong ratings continue to underpin our success in the Australian intermediary market with our wholesale AUM reaching over $690m as at 19 th October this year’ said Angela MacPherson.

The Colchester Global Government Bond Fund is selected as a core allocation in portfolios for its defensive characteristics and its strong liquidity profile. As sovereign bonds have a lower correlation to other fixed income securities such as credit and high yield as well as to traditional growth assets, the fund offers a defensive anchor for Colchester Global Investors (Singapore) Pte. Ltd. 6 Battery Road, #40-02A Six Battery Road Singapore, 049909 www.colchesterglobal.com clients’ portfolios in market crisis. Meanwhile the Colchester Emerging Markets Bond Fund provides greater opportunity to receive both higher income and medium-term capital growth, albeit with higher volatility than Colchester’s flagship Fund but similar to that of global high yield allocations.

Media Contact

Angela MacPherson
0431 075 024
[email protected]

About Colchester Global Investors

Colchester Global Investors is a value-oriented investment manager with a singular focus on managing global sovereign bonds and currency. Chairman and CIO Ian Sims founded the privately-owned asset management business in 1999. Colchester is based in London, with offices in New York, Singapore, Sydney and Dubai. Colchester has funds under management of approximately A$57bn across four core strategies being global sovereign bonds (A$36.2bn), global inflation-linked (A$2.8bn), emerging market debt (A$16.6bn), and an alpha program (A$1.3bn).

Colchester enjoys a long-standing history of managing money for many prestigious Australian and New Zealand institutions, with assets under management of A$6.5bn. Investment management services are provided to institutional clients on a separate account basis for mandates over A$75 million.

Colchester has also launched wholesale funds for their global fixed income and emerging market capabilities. The Colchester Global Government Bond Fund has FUM of approximately $635 million and The Colchester Emerging Markets Fund has FUM of approximately $19 million.

The Colchester Global Government Bond Fund is currently rated Highly Recommended by Lonsec and Zenith, and the Morningstar Analyst Rating™ is Silver. The fund is listed on 25 platforms which covers most of the intermediary market.

The Colchester Emerging Markets Bond Fund is currently rated Recommended by both Zenith and Lonsec, and current platform listings include Ausmaq, BT Panorama, HUB24, Netwealth and Praemium.


Please note the following in respect of Colchester’s regulatory status in Australia: (i) neither Colchester Global Investors Limited ARBN 153 119 763 nor Colchester Global Investors (Singapore) Pte. Ltd ABN 58 159 947 583 hold an Australian financial services licence for the provision of certain financial services, and both entities are exempt from the requirement to hold an Australian financial services licence under the Corporations Act 2001 in respect of the financial services Colchester provides on the basis that, among other things, it only provides services to “wholesale clients” with the meaning of the Corporations Act 2001; (ii) Colchester Global Investors Limited is authorised and regulated by the Financial Conduct Authority of the United Kingdom under the laws of England and Wales, which differ from Australian laws; (iii) Colchester Global Investors (Singapore) Pte. Ltd is regulated by the Monetary Authority of Singapore under Singapore laws, which differ from Australian laws. Therefore, Australian wholesale clients are not necessarily subject to the same types of legal protections or remedies that they would enjoy if Colchester was directly subject to the Corporations Act.

The Lonsec Rating (Colchester Global Government Bond Fund assigned September 2020 & Colchester Emerging Markets Bond Fund assigned October 2020) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Colchester Global Investors product(s), and you should seek independent financial advice before investing in this product(s). TheRating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.lonsecresearch.com.au/research-solutions/our-ratings

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned February 2020 for Colchester Global Government Bond Fund and Colchester Emerging Markets Bond Fund) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines

The Morningstar Analyst Rating™ for Colchester Global Government Bond Fund is ‘Silver’ as of 28 Feb 2020. © 2020 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser.

Equity Trustees Limited (ABN 46 004 031 298, AFSL 240975) is the Responsible Entity of the Colchester Global Government Bond Fund (ARSN 168 909 671) and the Colchester Emerging Markets Bond Fund (ARSN 616 633 428) (each a “fund”). This document is not intended to be securities or financial product advice and should not be relied upon as such. To obtain a copy of a Fund’s PDS please contact Colchester. The PDS should be considered in deciding whether to acquire, or continue to hold, an investment in a Fund. This information is of a general nature only and does not take into account the investment objectives, financial situation or particular needs of any investor and should not be taken as a securities or stock recommendation. These factors should be considered before any investment decision is made in relation to a Fund. The performance of a Fund is not guaranteed. Colchester and Equity Trustees Limited make no representation (express or implied) and shall have no liability in any way arising from the provision of this document for any loss or damage, direct or indirect, arising from the use of this document.