Milliman Wholesale Managed Risk Australian Share - Class A

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/101645-2022-03-09-17:33.pdf
ASX Code
INVESTMENT STYLE The Fund is exposed to an equity index fund which is benchmarked to the S&P/ASX 200 Accumulation Index.
INVESTMENT PROFILE The Fund seeks to provide returns similar to the Benchmark, but with lower absolute volatility and superior downside protection, over the longer term.
BENCHMARK S&P/ASX 200 Accumulation Index
FUND SIZE S&P/ASX 200 Accumulation Index
FEES 0.51% p.a.



Benefits of investing in the Milliman Managed Risk Fund Series

Investing in one of the funds allows you to take advantage of a team of investment professionals helping to make the most of your money.

Alliance with Milliman

  • Each of the funds is offered to you by Colonial First State through an alliance with Milliman, which provides you the opportunity to have your investment managed by a well- established global investment manager.

Award winning service

  • We are committed to delivering superior client service and administration which has been recognised through many industry awards.

FirstNet e-Post

  • e-Post is the fast and secure way to submit original forms and requests via FirstNet, our secure online service. You no longer need to post the originals, saving you time and effort. You will receive an instant email confirmation when you submit your request and a reference number. You must only submit original forms.

Risk level





Key Features

About the Fund

The Milliman Managed Risk Australian Share Fund (the Fund) offers investors access to long-term capital growth through exposure to equity markets, while simultaneously providing downside protection against market volatility. The Fund uses futures to hedge assets that act independently of the underlying portfolio to help foster growth in up markets while defending against losses in down markets.

The fund aims to provide long-term capital growth through exposure to equity markets while utilising a risk management strategy designed to reduce volatility and minimise losses in declining markets. The fund aims to perform in line with the S&P/ ASX 200 Accumulation Index over rolling five-year periods before fees and taxes with lower volatility and improved risk- adjusted returns over a full market cycle.

Investment philosophy and process

Contrary to many risk management strategies available today, Milliman's approach relies on some of the simplest, most liquid hedge assets available, with a key focus on efficient and predictable rules-based risk management.

Milliman's actuarial pedigree, capital markets expertise and understanding of the dynamics of retirement, enable them to provide valuable solutions to meet the challenges of advisers and their clients. Milliman's risk management techniques have been tested for over 20 years and through two market crises (the 2000 Internet bubble and the 2008 global financial crisis).

The Milliman Managed Risk Strategy aims to stabilise the volatility of an investment portfolio during periods of significant and sustained market declines, providing investors with the same risk management techniques used by major financial institutions around the world.

The Milliman Managed Risk Funds investment philosophy is defined by four core beliefs:

  1. Investment solutions, particularly for retirees and those approaching retirement must consider individual circumstances and human behaviour in their design.
  2. Investors require exposure to growth assets such as equities to fund long-term goals.
  3. Diversification alone is not an explicit risk management strategy as highlighted by recent market crises.
  4. Risk management should be explicit and implemented in a robust, transparent and cost-effective manner that isn't reliant on discretionary bets.

About Milliman

Milliman is a global leader in financial risk management to the retirement savings industry. Their goal is to create better retirement outcomes by bringing together market insights derived from actuarial expertise and rigorous methodology, and a real-life understanding of retirement needs and human behaviour.

Milliman has been providing risk management services to life insurance companies since 1947, pioneering some of the most important hedging solutions for the industry since 1998. Many of these same techniques are now available for individual investors through Milliman Managed Risk Funds.

In Australia, Milliman has been providing specialist risk management services for over a decade to local superannuation, life insurance and asset management clients.


How we invest your money

The fund is exposed to an equity index fund which is benchmarked to the S&P/ASX 200 Accumulation Index. The fund will utilise exchange-traded equity index future contracts to implement the fund's objective of reducing overall portfolio volatility and providing downside protection by hedging against market risk. Consequently, the fund may underperform in rising equity markets and may also limit losses in falling markets.


  • Australian shares: 30-100%
  • Cash and futures: 0-70%