Zurich launches new SMA

Zurich Investments has launched a new separately managed account focused on global growth opportunities, which will be available on the HUB24 platform.

The Zurich Investments Global Growth Opportunities SMA offers financial advisers the opportunity to invest in a high conviction growth strategy of up to 22 global securities, which will be selected and managed by US-based American Century Investments.

It is the same group who manages Zurich's Concentrated Global Growth Fund, which senior client portfolio manager Bernard Chua said uses the same investment philosophy to outperform the benchmark.

"The philosophy is that, if we can identify companies with an inflection point in fundamentals, and importantly, where that inflection point is sustainable, we believe those companies with an accelerating trend in earnings growth will outperform the rest of the market," Chua said.

The objective of the SMA is to 300 bps of outperformance above the benchmark, which is appropriate for investors with a long term investment horizon and "investors who appreciate the benefit of SMA investing", he added.

Zurich said it believes the SMA structure and its underlying global growth investment strategy brings a "differentiated and competitive choice" to advisers, in addition to increased control and direct ownership of the underlying portfolio holdings.

The structure, Zurich said, is advantageous to investors as it gives them the opportunity to customise an investment portfolio with choice to exclude, or lock in asset features based on personal preferences.

It also gives investors the transparency of direct investment, and offers the potential to "more effectively manage individual taxation requirements.

Zurich head of savings and investments Matthew Drennan said the SMA reflected the market focus and the strong demand from advisers, who are seeking access to this strategy in a format offering more control and transparency for investors.

"We believe the SMA structure may also suit advisers entering the market who are looking for easier ways to manage investment options for their clients," he said.

"Using managed accounts in portfolio construction enables advisers to stay ahead of clients' changing needs and expectations and create personalised portfolios that put clients' needs first, while also delivering benefits in flexibility, tax-effectiveness, and a lower administration and compliance burden for the advice practice."

Read more: Zurich Investments Global Growth Opportunities SMABernard ChuaConcentrated Global Growth FundMatthew DrennanAmerican Century Investments
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