Canada Life has developed a range of risk-targeted funds, powered by Hymans Robertson, including lower-cost index funds available exclusively through financial advisers.
The Diversified Risk Managed fund range comprises four globally diversified profiles, which have been risk-profiled by Defaqto and other providers, to help investors and advisers achieve their long-term objectives.
The new DRM range has been developed as part of an overall refresh of Canada Life's eight-strong managed funds, which have 0-35 per cent, 20-60 per cent and 40-85 per cent funds.
The new fund range allows investors and advisers to choose from four different risk profiles, each with specific volatility parameters, that best fits their long-term investment objectives (see image).
The funds are aligned to Defaqto risk ratings 3-6, which Canada Life's head of investment proposition (wealth), Shelley Greenwood, said aimed to deliver the greatest likelihood of optimal risk-adjusted returns, while ensuring client portfolios remain within the boundaries of pre-agreed risk profiles.
The DRM suite will be available to investors and advisers via CLAM’s open-ended investment company range, Canada Life’s The Retirement Account, onshore bond, and on a variety of investment platforms.
According to Greenwood, the launch "comes at a time when we see a growing demand from advisers for an easy-to-use, and well governed, range of solutions".
The index versions are built mainly from index-tracking funds managed by Canada Life's fund partner, Vanguard.
Also as part of the refresh, the DRM range has:
- Moved to volatility targeting - the funds’ objectives have been amended to include volatility targeting, to constrain the degree to which the performance of the fund will move up and down in the short-to-medium term
- Removed geographic and currency restrictions - the funds will now all be able to invest globally to achieve better diversification and the enhanced performance
- Completed the risk profile suite - an additional fund, the DRM 5 Fund, has been added to the risk profile suite, to ensure that the range has funds spanning all risk profiles from 3-6
- The DRM fund range will be co-managed by Craig Rippe, Head of Multi-Asset, and Jordan Sriharan, Fund Manager.
- Lower-cost index funds will be available to advisers exclusively through The Retirement Account, priced at 0.25 per cent /25bps.
Greenwood added: "As the funds have volatility targets, advisers will be able to support their clients to understand the ups and downs that they can expect to experience in their investment journey."
simoney.kyriakou@ft.com
