Cbus has introduced a new options program allowing it to manage risk for members in its superannuation products with listed equity exposure.
The program will manage a portfolio of exchange-traded equity options for the Australian and major international equity markets, allowing Cbus to tailor their product offering
Developed through a partnership with QIC, it can be scaled up or down, dependent on the relative merit of options to other risk strategies available.
Cbus investment manager, strategy Tim Ridley said, "One of the advantages of the strategy is the flexibility it provides as we develop new products in the retirement space. The introduction of the options strategy increases Cbus' capacity to manage risk, providing the capability to not only improve outcomes for our current accumulation members, but to also further tailor our product offering to members as they near or enter retirement."
Commenting on the partnership with QIC, Cbus executive manager, investment strategy Kristian Fok said, "We view this as the beginning of a broader relationship with QIC, reflecting our shared investment values and an alignment with our focus on members. Additionally, reflecting the strong calibre of the team at QIC, the relationship gives us access to strategies and ideas that may generate more opportunities for us going forward."
QIC chief executive Damien Frawley added: "We're pleased to have been able to develop a tailored options solution specific to Cbus' investment requirements.
"The innovative volatility management program we designed for Cbus stems from the whole-of-fund thinking embedded in QIC's investment DNA as well as our philosophy of partnering with clients."