Colonial First State has struck a deal with South Africa-based financial services company Sanlam so it can distribute its managed risk funds in Australia.
Sanlam will overlay its active risk management strategy to three new Colonial First State index funds – the Sanlam Risk Australian Share Fund, the Sanlam Managed Risk Global Share fund, and the Sanlam Managed Risk Multi-Index High Growth fund.
Colonial First State general manager of product and investments Peter Chun said Sanlam’s managed risk strategy was suited to retirees and their advisers, allowing them to “respond to challenges of a low interest rate environment”.
“Sanlam’s managed risk strategy is designed to help minimise the impact of major market declines by reducing clients’ exposure to equities in falling markets, while allowing participation in rising markets,” Mr Chun said.
The funds will be available on Colonial First State's FirstChoice platform and are expected to be available on the FirstWrap platform from June.
Sanlam Global Investments Solutions chief executive, Cobus Kruger, said Sanlam was pleased to establish a presence in Australia.
“Australians can now leverage a strategy that addresses market, liquidity and sequencing risks and relieve some of their fear around investing and market declines.
“By minimising the impact of market drawdowns and actively reducing portfolio volatility, Sanlam’s managed risk strategy gives investors more confidence to hold their equity positions, even when markets fall significantly,” he said.
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