* The Investment Manager utilizes an Artificial Intelligence (Ai) investment engine that drives the risk management strategy Investors # 1 risk is capital loss (not volatility) Equities typically outperform all other asset classes over the long-term Diversification alone does not provide effective risk management during crises when all asset classes typically become highly correlated Fixed income may not supply investors with the same capital gains, low volatility and liquidity as it has done over the past 35 years Behavioral finance has proven that human emotions & biases impact returns negatively Man with machines is far more efficient than man alone PROPOSITION In a crowded multi-asset market place, it is vital to be able to provide a differentiated solution that stands out from the masses. The Sanlam AI Global Managed Risk Fund is a next generation ‘all-rounder’ solution – designed to diversify human manager risk – offering the following profile over a market cycle: • Stronger total return (outcome) than Aggressive Funds • Similar volatility (tolerance to risk) to Moderate Funds • Similar maximum drawdown (capacity for loss) to Cautious Funds • Shorter time in maximum drawdown (time- in-loss) than Absolute Return Funds • Sanlam Global Investment Solutions SANLAM AI GLOBAL MANAGED RISK FUND A NEXTGEN SOLUTION UTILIZING ARTIFICIAL INTELLIGENCE (Ai)* The purpose of the fund is to provide a return similar to global equities over a market cycle while minimising capital loss and time in loss risk. FUND PRINCIPLES
Transcript
* The Investment Manager utilizes an Artificial Intelligence (Ai) investment engine that drives the risk management strategy
Investors # 1 risk is capital loss (not volatility)
Equities typically outperform all other asset classes over the long-term
Diversification alone does not provide effective risk management during crises when all asset classes typically become highly correlated
Fixed income may not supply investors with the same capital gains, low volatility and liquidity as it has done over the past 35 years
Behavioral finance has proven that human emotions & biases impact returns negatively
Man with machines is far more efficient than man alone
PROPOSITIONIn a crowded multi-asset market place, it is vital to be able to provide a differentiated solution that stands out from the masses.
The Sanlam AI Global Managed Risk Fund is a next generation ‘all-rounder’ solution – designed to diversify human manager risk – offering the following profile over a market cycle:
• Stronger total return (outcome) than Aggressive Funds
• Similar volatility (tolerance to risk) to Moderate Funds
• Similar maximum drawdown (capacity for loss) to Cautious Funds
• Shorter time in maximum drawdown (time-in-loss) than Absolute Return Funds
•
Sanlam Global Investment SolutionsSANLAM AI GLOBAL MANAGED RISK FUND
A NEXTGEN SOLUTION UTILIZING
ARTIFICIAL INTELLIGENCE
(Ai)*
The purpose of the fund is to provide a return similar to global equities over a market cycle while minimising capital loss and time in loss risk.
FUNDPRINCIPLES
The Fund is efficient in its composition, requiring only 3 “assets”: EQUITY for growth potential, CASH and SHORT FUTURES for risk
management in order to dynamically alter the equity exposure.
Intended for growth. Achieved by investing in Sanlam’s passive Satrix World Equity Tracker Fund which aims to
replicate the performance of global equity markets1.
Designed to minimize the risk of capital loss and time in loss while maximizing total returns over a market cycle.
The investment manager utilizes Artificial Intelligence to
drive the Fund’s risk management strategy; dynamically
altering the net exposure to the market with short futures
contracts which change in value inversely to equity market
movements.
Therefore, when equity markets fall, the futures increase in
value offsetting varying degrees of the losses. In rising equity
markets, full participation in the growth of the markets may
be forsaken to some extent for the benefit of minimizing
*Source for data is Sanlam Global Investment Solutions and Financial Express. Basis for performance data: NAV based, total return (net of fees), in US$. Periods of performance stated that pre-date 28 June 2013 is for illustrative purposes only and includes an institutional account as well as the UCITS Fund performance. Morningstar Europe/Asia/Africa: USD Flexible Allocation Category
Past performance disclaimer. The Fund was launched on 28 June 2013 and therefore no earlier UCITS Fund performance numbers are available. The preceding systematic Institutional Managed Account had a similar composition to the Sanlam AI Global Managed Risk Fund and used the same Managed Risk Strategy as the Sanlam AI Global Managed Risk Fund at that time and therefore we believe the performance numbers quoted are a fair indication of what the performance of this Fund would have been. The preceding Institutional Managed Account consisted of 60% US, 30% International (non-US) Developed and 10% Emerging Markets exposure utilising the MSCI World, S&P500 and EEM indices. On 12 June 2017 the risk management strategy that the investment manager utilises was moved to one that is driven by an Artificial Intelligence (AI) Machine Learning investment engine. Past performance should not be taken as an indicator of future performance.
As of December 31, 2019.
1
2
3
4
7
8
5
6
9
10
Strong & highly rated parent company (USD12bn market cap, USD62bn AUM, AA+ by Fitch)
Driven by AI investment engine designed to minimize the risk of capital loss and time in loss
No key-man risk, human emotion/behavioral biases (Ai risk management process)
Not at risk of bond bear market (Holds no bonds)
Risk management strategy inversely correlated to equities
Always less risk than equities (max 90% equity exposure)
Highly flexible (10-90% equity range – Less than conservative funds and more than aggressive funds)
Simple (3 holdings), daily liquid at NAV with no notice periods, no leverage and totally transparent portfolio
This piece was designed to provide a brief description of the features of the Sanlam AI Global Managed Risk Fund. It does not constitute an offer or solicitation to anyone. It is presented for information purposes only and is not intended for public distribution. The Sanlam AI Global Managed Risk Fund is not available in the United States or to citizens or residents of the United States.
Investments in the Sanlam AI Global Managed Risk Fund are subject to market risks. Investments can go down as well as up as a result of changes in the value of the investments. There is no assurance or guarantee of capital or performance. Investors may lose money including possible loss of capital. Past performance is not necessarily a guide to future performance.
Sanlam does not make any representations that products or services described or referenced herein are suitable or appropriate for an investor. Many of the products and services described or referenced herein involve significant risks, and an investor should not make any decision or enter into any transaction unless the investor has fully understood all such risks and has independently determined that such decisions or transactions are appropriate for the investor. Any discussion of risks contained herein with respect to any product or service should not be considered to be a disclosure of all risks or a complete discussion of the risks involved. Investors must make their own independent decisions or seek advice from their financial advisor regarding the suitability and risks of any strategies or financial instruments mentioned herein.
The Sanlam AI Global Managed Risk Fund is sub-fund of Sanlam Universal Funds plc. The Sanlam Universal Funds plc full prospectus, the Fund supplement, and the KIID is available free of charge at www.sanlamgis.com. This is neither an offer to sell, nor a solicitation to buy any securities in any fund. Any offering is made only pursuant to the relevant offering document, together with the current financial statements of the relevant fund, and the relevant subscription application forms, all of which must be read in their entirety together with the Sanlam Universal Funds plc prospectus, Fund supplement and the KIID.
