Funds under management in Milliman’s SmartShield managed accounts have passed $100 million.
The SmartShield range sought to offer dynamic protection against market downturns and volatility without giving up potential upside.
This was attractive to advisers, the firm said, in a world of volatile stockmarkets, rising inflation and rising interest rates.
The four portfolios- Moderate, Balanced, Growth and High Growth- used a dynamic risk management strategy with futures contracts to ensure it remained low cost and liquid.
It also gave advisers the ability to increase exposure to growth assets as they knew protection would kick-in when it was needed
Milliman principal and head of investment solutions Asia Pacific, said the portfolios had benefitted from being launched before the COVID-19 downturn as this allowed it to test the success of the strategy.
“The COVID-19 downturn offered up a real-world situation to test the strategy. It demonstrated to investors how effective dynamically hedging their portfolios against significant market downturns can be.
“Global insurers, pension funds and wealth management firms have successfully used these techniques for decades. Through SmartShield, retail investors have been able to protect their portfolios in the same simple and low-cost way.”
