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."