Colonial First State has partnered with South African asset manager Sanlam Group to distribute its managed risk funds in Australia.
Under the alliance, Sanlam will overlay its active risk management strategy to three Colonial First State index funds, which will create three new funds.
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The funds include the Sanlam Managed Risk Australian Share fund, the Sanlam Managed Risk Global Share fund, and the Sanlam Managed Risk Multi-Index High Growth fund.
The funds will be available as standalone investment strategies for SMSF and direct investors.
Colonial First State general manager product and investments Peter Chun said that Sanlam’s Managed Risk strategy aims at cutting down equities exposure in falling markets and increasing it in rising markets.
According to Chun, the strategy is especially suitable for retirees who want to capitalize on the benefits of share market participation and dividends, but are uncomfortable with associated markets risks.
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By GlobalDataSanlam Global Investments Solutions chief executive Cobus Kruger added: "Australians can now leverage a strategy that addresses market, liquidity and sequencing risks and relieve some of their fear around investing and market declines. It helps people to stay in the market and reap the benefits of long-term investing.
"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."
The three funds, now available on Colonial’s FirstChoice platform, are expected to be available on the FirstWrap platform from June 2015.
