Wisconsin Alumni Research Foundation, Madison, hired Clifton Group Investment Management for overlay services, including asset allocation implementation, rebalancing and managing exposure to underlying asset classes, said Tom Weaver, director of investment for the $1.4 billion fund. The foundation gave Clifton direct access to the fund's daily custodial records at State Street Bank & Trust to keep the asset allocation tightly aligned to the policy level, using futures to offset cash exposures that managers might have because of market developments, he said.
Clifton will assist in rebalancing, using futures to immediate rebalance to policy asset allocation levels without affecting underlying portfolios. It will also assist in manager transitions, working with new and terminated managers to temporarily replicate portfolios using futures, providing continuing asset class exposure during the change.
In addition, the foundation plans to use Clifton in portable alpha strategies. The firm will manage the exposure to an underlying asset class while the alpha manager tries to generate above-market returns.
