Colonial First State creates new funds with Sanlam
Colonial First State will create three new funds through an alliance with Sanlam to distribute its innovative managed risk funds in Australia.
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 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," Colonial First State general manager for product and investments, Peter Chun, said.
"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."
Sanlam Global Investments Solution chief executive, Cobus Kruger, said through the alliance Australians could leverage a strategy that addresses market, liquidity and sequencing risks, and relieve some 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," Kruger said.
Recommended for you
Record flows into iShares ETFs helped BlackRock’s assets under management reach US$13.5 trillion in the third quarter, but it reported outflows from the APAC region.
Regal Partners has passed $20 billion in funds under management, helped by $723 million in net inflows during the last three months.
Global investment manager Fidante has formed a strategic partnership with a London-based asset manager to secure exclusive distribution rights across the APAC region.
Blackwattle Investment Partners has hired a management trio from First Sentier Investors – who departed amid the closure of four investment teams last year – to run its first equity income offering.
