Superannuation Arrangements of the University of London appointed First Quadrant to manage a risk parity portfolio valued around £80 million ($121 million), according to Penny Green, chief executive of the £1.8 billion SAUL.
No manager was terminated, Ms. Green said in an e-mail. “We sold our physical U.S. equity holdings and moved them to S&P 500 futures to fund the mandate,” she added.
The new mandate will be invested within First Quadrant's Global Risk-Balanced Fund, which is a multiasset strategy that aims to diversify risk across such assets as global developed and emerging markets equities, global sovereign bonds, commodities and real estate.
Independent investment consulting Redington advised.