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CFS Future Leaders Fund

Discussion in 'Managed Funds & Index Funds' started by Simon, 1st Oct, 2007.

  1. Simon

    Simon Well-Known Member

    Joined:
    17th Sep, 2005
    Posts:
    520
    Location:
    Newcastle
    I have been invested in this fund for some time now and happy with progress to date. I reinvest the distributions into new units as I don't need them at this phase of my life.

    This fund is closed to new investors. I assume that this doesn't mean me as they accept my DRP. Can I invest another lump sum in there though?

    Would I want to?

    If this fund has been closed to new investments is this because it has reached optimim size and will progress well under good management?

    Or was it closed for a less positive reason and skilled management is being used for other open funds? Has the growth I experienced lately been just because of the rising tide effect?

    Should I elect to choose a newer fund?

    Does anyone actually know the answers here? :)

    Or does anyone have opinions to offer? :)

    Thanks guys,
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
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    4,619
    Location:
    Sydney, Australia
    It is typical for companies to close off small companies funds when they get to a certain size - otherwise they can have too much of an impact on the shares they are holding.

    Generally you should be able to make additional investments if you are an existing unitholder - I've certainly had no problems investing in the CFS W/S Small Companies - Core fund, which was also closed to new investors earlier this year.

    There is a new FirstChoice version of the Future Leaders fund which is still open - Colonial First State Future Leaders ... or perhaps check out their multi-manager fund Colonial First State - FirstChoice Australian Small Companies ... which uses investment managers Colonial First State, GMO, Jenkins and Souls. I'm about to put money into the wholesale version of the multi-manager FC Small Companies fund for my super fund.
     
  3. AsxBroker

    AsxBroker Well-Known Member

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    8th Sep, 2007
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    1,448
    Location:
    Sydney, NSW
    Hi Simon,

    Don't assume, ring them up and ask them...
    If they say weird stuff like "soft close" its all good and current investors can put more money in. If they say "hard close" that means you can't put any more money in.

    Cheers,

    Dan
     
  4. Simon

    Simon Well-Known Member

    Joined:
    17th Sep, 2005
    Posts:
    520
    Location:
    Newcastle
    Thanks Dan,

    Any thoughts as to whether I should stick with a closed fund or not?
     
  5. Mark Laszczuk

    Mark Laszczuk Well-Known Member

    Joined:
    16th Aug, 2005
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    793
    Location:
    Brisbane
    If it's performing to your expectations, there's no reason why you shouldn't.

    Mark
     
  6. learning

    learning Member

    Joined:
    22nd May, 2007
    Posts:
    20
    Location:
    WA
    You can still make lump sum investments into the closed funds. I have just done this recently via my margin loan(couple of weeks ago) with 2 of my CFS funds, both of which are closed to new investors, including the Future Leaders Fund.