Colonial First State’s (CFS) flagship CFS Geared Share Fund has surpassed $10 billion in funds under management (FUM).

Returning 23.3% in FY 2023-2024 and delivering an average annual return of 14.2% since inception in 1997, CFS clarified that a $10,000 investment in the fund in August 1997. it would now cost about $350,000.

The CFS Geared Share Fund invests primarily in large, high-quality companies with strong balance sheets and earnings, with the objective of increasing long-term capital growth returns by borrowing to invest in large Australian companies.

It aims to outperform the S&P/ASX 100 Accumulation Index over seven-year periods before fees and taxes, with the fund's vehicle maximizing returns on underlying investments, whether they are gains or losses.

Commenting on the milestone, Peter Labrie, CEO of CFS, FirstChoice, said targeted funds continue to play a role within a diversified portfolio for members seeking above-average investment performance over the long term.

"CFS Geared Share Fund is for long-term investors, and we are pleased that it has grown over the years to reach $10 billion in total assets," Labrie said.

“We also recognize the strong investment performance of First Sentier Investors, who have managed the fund over its 27-year history.

"Both CFS members and the advisors they work with are attracted to the long-term performance of our targeted investment options, and we will continue to develop new offerings over time."

CFS added that it has expanded its range of targeted investment options in recent years, with the launch of the CFS Geared Index Australian Share Fund and the CFS Geared Index Global Share Fund in December 2021.

Last month, the firm reported its second consecutive year of double-digit returns for members of its MySuper Balanced and Growth Funds.

Namely, the FirstChoice Employer Super Balanced Fund (MySuper Lifestage 1965–69) delivered a 12.1% return for the 2023–24 financial year, while the FirstChoice Employer Super Growth Fund (MySuper Lifestage 1975–79) delivered a 14.3% return.

Additionally, CFS, which has more than $150 billion in assets under management, is in the "relatively unique" position of not owning any legacy unlisted assets, according to Jonathan Armitage, CFS's chief investment officer.

"In an environment of higher interest rates, this has enabled us to deliver another year of solid returns for members," Armitage said in July.