The alliance will allow financial services group Sanlam to distribute its managed risk funds in Australia.
Sanlam will overlay its active risk management strategy to three Colonial First State index funds, creating three new funds: the Sanlam Managed Risk Australian Share fund; the Sanlam Managed Risk Global Share fund; and the Sanlam Managed Risk Multi-Index High Growth fund
All three funds are available on the FirstChoice platform and are also available as standalone investment strategies for SMSFs and direct investors.
Sanlam Global Investments Solutions chief executive Cobus Kruger said Sanlam was pleased to have the opportunity to create an extensive presence in the Australian market through its alliance with Colonial First State.
“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,” he said.
Mr Kruger said the recovery of markets following the global financial crisis showed people who held their equity positions regained value as the markets rebounded.
“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.