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."
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
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