Milliman Wholesale Managed Risk Global Share - Class A
About this Fund
|ASSET CLASS||EXCHANGE TRADED FUNDS|
|INVESTMENT STYLE||The Fund is exposed to an equity index fund which aims to match the performance of the Benchmark.|
|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.|
|CURRENCY MANAGEMENT||Active management|
|BENCHMARK||MSCI World (ex Australia) Index|
|FUND SIZE||MSCI World (ex Australia) Index|
|NO. OF HOLDINGS|
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
Award winning service
About the Fund
The Milliman Managed Risk Global 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 MSCI World (ex Australia) 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:
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 aims to match the performance of the MSCI World (ex Australia) Index. The fund will also 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. The fund may also hedge the currency exposure in relation to the downside protection. Consequently, the fund may underperform in rising equity markets and may also limit losses in falling markets. The underlying equity index fund does not hedge currency risk.