State Super Financial Services, Sydney, hired Acadian Asset Management for a A$90 million (US$84 million) emerging markets equity managed volatility allocation, confirmed an SSFS spokeswoman.
The latest managed volatility allocation is the third for Acadian from the financial planning company, which manages roughly A$13 billion for superannuation clients in or nearing the retirement stage. SSFS hired the firm to manage global equities in October 2012 as well as Australian equities in February 2013 as part of its Sydney-based joint venture with Colonial First State Investments, according to an Acadian news release.
The global managed volatility mandate stands at roughly A$230 million at present, while the Australian equity managed volatility mandate comes to roughly A$350 million.
In the news release, Damian Graham, chief investment officer of SSFS, said his team believes a managed volatility allocation can bolster the robustness of SSFS' portfolio, delivering the long-term returns of emerging markets equities while reducing risk.
