New suite of Sanlam funds help manage equity investment risk

The Sanlam P2strategies Funds help investors remain invested and avoid value destroying behaviours such as buying high and selling low. P2international CEO Cobus Kruger comments "it is widely accepted that one of the best ways to ensure people have enough saved over the long-term is to invest in the stock market. Yet the stock market experience is not always positive. Markets are unpredictable with their ups and downs. Getting in or out at the wrong time can significantly affect the value of an investor’s portfolio.”

 

P2strategies’ belief is that even as investors become risk averse as they approach retirement, many need to remain invested in the stock market to help fund their desired lifestyle in retirement. Increased equity exposure does not necessarily mean they need to take on increased risk. By utilising P2strategies Funds, investors can access a solution that seeks to capture growth when markets rise and defend against losses when markets fall. Remaining invested is especially important for investors when they begin to take withdrawals.

 

Johan van der Merwe, CEO of Sanlam Investments says, "We know that South Africa’s exceptionally well run pension fund industry will benefit tremendously from the risk management offered by P2strategies and are therefore excited to bring these products ‘home’.’’ Sanlam Investments has held a majority stake in Bermuda-based investment firm, P2international Ltd since 2012.

 

 

The Sanlam P2strategies’ suite of funds provides flexibility for investors to create their own portfolio by giving them access to five major equity markets in the simple and cost effective UCITS IV fund structure with P2strategies built in. The risk management aspect helps dynamically manage an investor's equity exposure, helping to minimise losses during major market downturns and provide a smoother, less volatile experience for investors that are in pre and post retirement phases.

 

P2strategies is advised by Milliman, one of the world's largest risk management firms. Milliman's institutional risk management strategies have been tried and tested for more than 16 years on over US$ 500 billion in underlying account value on a daily basis over 6 million individual accounts.

 

The P2strategies Funds provide equity exposure via index tracker funds and have a competitive, annual management fee of 75bps. There are no performance fees.

 

The suite of Sanlam P2strategies Funds approved by the Financial Services Board is as follows:

• Sanlam P2strategies UK Fund

• Sanlam P2strategies Global Fund

• Sanlam P2strategies North America Fund

• Sanlam P2strategies Emerging Market Fund

• Sanlam P2strategies Europe ex-UK Fund