Asset Super, Parramatta, Australia, hired AQR Capital, BGI, First Quadrant and Mellon Global Investments to run a combined A$55 million (US$43.6 million) global tactical asset allocation portfolio. AQR and First Quadrant are both affiliates of the Affiliated Managers Group, which just set up an Australian office this month.
Fund officials decided last year to add a A$160 million program in private equity and other unlisted investments. The allocation was added as part of a major restructuring, in which the A$1.3 billion fund significantly reduced its traditional active equity and fixed-income investments. Chief Executive John Paul said the total portfolio shift, including a move to passive management of bonds and listed property from active management, should not increase overall volatility.
Funding for the GTAA portfolios will come from reducing the fund's Australian equities, international shares and Australian bonds portfolios.