Cbus manages risk for members through innovative program with QIC
18 March 2016
Cbus is introducing an innovative options program that will increase the tools available to Cbus to manage risk for members in its superannuation products with listed equity exposure.
The program has been developed in close partnership with QIC, and is designed to manage a portfolio of exchange-traded equity options for the Australian and major international equity markets.
Uniquely, Cbus will work alongside QIC to determine whether the program is scaled up or down, dependent on the relative merit of options to other risk strategies available. This enables costs to be kept to a minimum while delivering enhanced outcomes for members.
Kristian Fok, Executive Manager, Investment Strategy at Cbus says “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.”
Tim Ridley, Cbus’ Investment Manager, Strategy 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.”
Damien Frawley, QIC’s CEO said: “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.” said Mr Frawley.