FROM UNITED KINGDOM MAR 28 2012 BY: MARK BATTERSBY , EDITOR , INTERNATIONAL ADVISER
Article from International Adviser
South African financial services group Sanlam is launching an offshore bond into the UK for the first time, with an interesting new option to protect against downside risk in falling markets.
Called the Sanlam Global Investment Plan (SGIP), the investment proposition offers three options. The first gives access to 500 different funds, denominated in various currencies, and spread across 34 asset managers including many well-known names.
But it is the second option which differentiates Sanlam from its competitors, called P2Strategies, managed by Milliman, one of the world's largest risk management firms well known in the institutional world and currently only available through Sanlam.
P2Strategies is designed to provide risk-adjusted compound returns over time, so for example a fund invested in India might have 70% invested in the equity portfolio and 30% in a tracking account which maps the fund to a set of indices, using the deeply liquid futures market.
Corbus Kruger, managing director of Sanlam Global Investment Solutions said: “We are offering clients a unique investment strategy that cushions the value of an investment in funds against increased volatility in equity and bond markets, merging capital preservation and investment growth needs in a single portfolio.”
The third option is discretionary fund management.
The bond offers UK-based investors multi-currency reporting and competitive pricing as well as bespoke online and website support. It will be available on a single or joint basis, as well as to companies, partnerships and trustees.
The SGIP is an investment-linked whole of life assurance policy, issued by Sanlam Guernsey, available in sterling, dollars or euros, with a minimum initial investment of 50,000 and additional investments of 5,000 in these denominated currencies.
Kruger added: “The SGIP is a long-term investment and also allows access to leading global fund managers, including Sanlam’s own discretionary investment management [DIM] services, or an independent DIM of one’s choice. In addition, investors will have access to Sanlam’s Accel risk profiler and Accel investment solutions through the Sanlam Global Investment Plan.”
Nigel Speirs, head of distribution for Sanlam UK, said: “We are excited about launching the SGIP as it will complement our newly-launched Sanlam Portal wrappers of ISA, General investment Account, Personal Pension and onshore bond. We are proud to be at the forefront of innovation by offering P2Strategies to UK IFAs and their clients, which we believe to be a first.”
Sanlam Private Wealth, Intrinsic, and Nucleus wrap are three of the routes Sanlam has chosen to distribute their offshore bond in the UK.
The fees and charges and charges are as follows:
Annual advice fee: maximum of 1.5%
Annual admin fees: 0.4% to 0.25%, depending on the size of the plan
P2Strategies: 0.75% p.a.
Accel Portfolios with P2Strategies: 1.00% p.a.
Article from International Adviser
