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Sanlam squares up to offshore bond competitors

Sanlam Global Investment Solutions has introduced an offshore bond that is designed to provide advisers and their clients with as much choice as possible post-RDR.

The Sanlam Global Investment Plan is available in sterling, US dollar and euro currencies and offers a range of investment options. As well as providing access to the firm’s Accel investment solutions and risk profiling tools, investors can choose Sanlam’s discretionary investmentmanagement services or their own discretionary manager.

The bond also offers a range of third-party funds, some of which have the option to add institutional-style capital preservation stategies run by risk profiling firm Milliman. These are known as P²Strategies and are designed to cushion the value of an investment in funds against volatility in equity and bond markets, merging capital preservation and investment growth needs in a single portfolio. P²Strategies are also available on the Accel model portfolios that Sanlam offers.

Sanlam says clients may opt for P²Strategies on funds with higher volatility, such as an Indian equity fund. P²Strategies work by allocating a proportion of the investment directly to the fund, while the remainder is invested in what is known as a P²Strategies account, which comprises exchange traded futures. These are inversely correlated to the proportion which is invested directly into a fund, enabling it to provide a hedge.

P²Strategies are currently available only through Sanlam and the firm sees them as a feature that sets it apart from other offshore bonds.However, P²Strategies are not available on every fund that Sanlam provides access to as Milliman sees them as inappropriate for some funds.

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