Colonial First State has partnered with South African financial services group Sanlam to 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 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.”
“Investors can have more confidence to stay invested for the long-term.
“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.
“It provides an alternative way for Australian retirees and their advisers to confidently respond to the challenges of a low interest rate environment,” he said.
Sanlam Global Investments Solutions chief executive, Cobus Kruger, said Sanlam is 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.
The funds are available on Colonial First State's FirstChoice platform and are expected to be available on the FirstWrap platform from June, a Colonial First State statement said.
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