Launched Monday (26 March), the SGIP is an investment-linked whole of life assurance policy, issued by Sanlam Guernsey and available in pounds, US dollars or euros with a minimum initial investment of 50,000 and additional investments of 5,000 in these currencies.
Cobus Kruger, managing director of Sanlam Global Investment Solutions, said: “We are offering clients a unique investment strategy that cushions the value of an investment in funds against increased volatility in equity and bond markets, merging capital preservation and investment growth needs in a single portfolio.
“This is called P2Strategies, managed by Millimann, one of the world’s largest risk management firms, currently only available through Sanlam. P2Strategies is designed to offer risk-adjusted compound returns over time.”
The amount invested in P2Strategies will depend on the volatility of the rest of the investment. Designed to smooth out overall performance by countering market movements while remaining liquid, this structure will encourage investors to stay invested at times of market volatility, Mr Kruger said.
Nigel Speirs, head of distribution for Sanlam UK, said the SGIP will complement the newly launched Sanlam Portal wrappers of Isa, general investment account, personal pension and onshore bond.
The bond will carry a maximum annual advice fee of 1.5 per cent and annual admin fees of between 0.4 and 0.25 per cent depending on the size of the plan.
P2Strategies will charge a fee of 0.75 per cent per annum and Accel Portfolios with P2Strategies will charge 1 per cent per annum.