AUSCOAL Super has awarded a $97.5 million managed volatility mandate to Boston-based Acadian Asset Management.
The strategy seeks to provide equity-like returns from global markets with significantly less risk than capitalisation-weighted indices, according to Acadian.
“We are attracted by the managed volatility concept because we expect it will reduce the risk within our portfolio without sacrificing returns,” said AUSCOAL chief executive Bruce Watson.
“This should help us in our objective to deliver high value, low cost retirement products to our members.”
The sovereign wealth fund grew $11.5 billion in the March quarter, according to its latest portfolio update, having previously voiced caution about inflation’s downward trajectory.
The property group, owned by industry super fund Aware Super, has announced two new projects with a total construction value of $320 million that will add more than 700 homes to Melbourne’s rental market.
While institutional investors, including super funds, unanimously acknowledge the energy transition as a significant challenge, their perspectives on the extent of their involvement in addressing the substantial capital requirements vary widely.
Despite a period of increased volatility, several considerations suggest that the bull market will remain intact and the trend in shares will remain up, an economist has suggested.
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