Zurich Investments launches new Global Growth Opportunities SMA  


Matthew Drennan

Zurich Investments has announced the launch of a new Separately Managed Account (SMA) focused on global growth opportunities. The Zurich Investments Global Growth Opportunities SMA allows investors the opportunity to invest in a high conviction growth strategy of up to 22 global securities, selected and managed by our US-based investment partner American Century Investments (ACI).

This innovative and highly targeted SMA is available to Australian financial advisers via the Hub24 platform. It introduces a new investment channel for Zurich Investments, leveraging the well-established expertise and long-term capital growth track record of ACI, a high-profile global investment manager. American Century is also known for its strong philanthropic stance, and since 2000, has distributed more than 40% of its profits to fund biomedical research via the not-for-profit Stowers Institute.

Zurich Investments believes the SMA structure and its underlying global growth investment strategy brings a differentiated and competitive choice to advisers seeking fresh global investment opportunities on behalf of clients, alongside increased control and direct ownership of the underlying portfolio holdings.

Matthew Drennan, Zurich’s Head of Savings & Investments, said the SMA allowed advisers and investors a broader range of access points into the Zurich Investments range of offerings.

“The launch of Zurich Investments Global Growth Opportunities SMA offering reflects strong demand from advisers, seeking access to this strategy in a format offering more control and transparency for investors. 

“Zurich Investments continues to review and expand its range of strategies and channels, based on adviser and investor demand, and this new offering reflects that market focus,” Mr Drennan said. 

“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.

“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,” he said.

Zurich Investments also believes the SMA structure is advantageous to investors in that it provides:

  1.  The opportunity to customise an investment portfolio with choice to exclude, or lock in asset features based on personal preferences; 
  2.  The transparency of direct investment; and 
  3.  The potential to more effectively manage individual taxation requirements.

The Global Growth Opportunities SMA is now live on Hub24.  

A little about the Zurich Investments Global Growth Opportunities SMA

The Global Growth Opportunities SMA is made up of 18-22 of the highest conviction stocks from the Global Growth strategy Zurich Investments offers with its strategic investment partner, American Century Investments. 

Current returns for the existing Concentrated Global Growth portfolio, which is managed by the same team and with the same philosophy as the SMA, but with 30-50 stocks, have seen strong results with the calendar YTD performance figures of 34.59% and the broader Global Growth strategy delivering 28.89% compared to the benchmark* at 20.01% as at 31 July.

*MSCI World (ex-Australia) accumulation index in $A (net dividends reinvested)

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