Investments  

Canada Life teams with Hymans Robertson to launch diversified range

Canada Life teams with Hymans Robertson to launch diversified range
New investment fund range for Canada Life.

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.

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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).

Canada Life's risk-managed range. (Source: Canada Life)

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