Colonial First State creates risk management funds with Sanlam
Colonial First State has formed an alliance with Sanlam resulting in three new funds delivering a risk management strategy designed to respond to the low interest rate environment, helping retirees.
The global financial services group will overlay its active risk management strategy to three Colonial First State index funds, creating the funds. The three funds will be the Sanlam Managed Risk Australian Share fund, the Sanlam Managed Risk Global Share fund, and the Sanlam Managed Risk Multi-Index High Growth fund.
"Sanlam's managed risk strategy is particularly well-suited to retirees who often want the benefits of share market participation, including the opportunity to benefit from dividends, but are often uncomfortable with the risks inherent in those markets," Colonial First State general manager for product and investments, Peter Chun, said.
"It provides an alternative way for Australian retirees and their advisers to confidently respond to the challenges of a low interest rate environment."
Chun said the 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.
Cobus Kruger, Sanlam Global Investments Solution chief executive, said through the strategy Australians could leverage a strategy that addresses market, liquidity and sequencing risks, and relieve some fear around investing and market declines.
The funds is expected to be available from June on Colonial First State FirstChoice platform, and as a standalone investment strategy for self-managed super fund (SMSF) and direct investors.
Recommended for you
The $205 billion super fund has appointed Simon Warner as chief investment officer (CIO) following a global search to replace outgoing Damian Graham.
Industry super fund Rest has appointed an interim head of private markets following the exit of Simon Esposito.
Two former Statewide Super executives have been acquitted of dishonesty charges following a trial in the District Court of South Australia.
Allianz Retire+ has announced major leadership changes with the appointment of a new CEO and distribution heads to help expand its presence across the institutional channel.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
