Stichting Pensioenfonds Stork, Amersfoort, Netherlands, hired Acadian Asset Management to run €120 million ($161 million) in a global managed volatility equity strategy, Alfred Slager, the plan's chief investment officer, said in a telephone interview.
The strategy is new for the Stork fund, which has an estimated €2.4 billion in total assets. Plan officials want to use a minimum variance approach to reduce volatility.
Funding will come from the plan's equity portfolio, which accounts for 35% of the entire fund, but Mr. Slager wouldn't name the equity manager whose portfolio had either been terminated or reduced as a result of the new mandate.
Fund officials may extend the strategy to include a larger portion of the equity portfolio in the next year or so, depending on the risk-adjusted returns of the new mandate, Mr. Slager added. In addition to the 35% allocation to equity, Stork also has 35% in fixed income, 13% in credit strategies, 15% in real estate and the remainder in other alternatives.
Laurent de Greef, managing director and head of European business for Acadian, said in a separate interview that no derivatives are used, but managers attempt to invest in lower-volatility stocks with the same return potential as some higher-volatility counterparts.
Diversification is also used to help achieve “a stable stream of returns,” Mr. de Greef added.
Acadian has about $49.3 billion in assets under management, about $1 billion of which is invested in the global managed volatility equity strategy.