VicSuper has awarded a $220 million low volatility global equity mandate to Analytic Investors, LLC.
It comes as the super fund looks to manage share market volatility, and said Analytic will apply an approach where it will provide insurance for the equity portfolio (using a managed volatility called a low beta) quantitative process.
VicSuper international shares portfolio will have about 30 per cent less downside volatility than a traditional portfolio.
Upside potential is similar to traditional equity portfolios in most market conditions, the fund said.
"Protection against downside risk is very important for us," chief investment officer Oscar Fabian said.
"Our equity portfolios are performing well and continue to deliver long term value for our member; however we are aware of the potential of a market correction."
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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