SSFS said the strategy aims to provide equity-like returns from emerging markets but with significantly less risk than capitalisation-weighted indices.
Acadian has managed a global managed volatility mandate for SSFS since October 2012, while Acadian’s joint venture business in Australia has managed an Australian managed volatility mandate for SSFS since February 2013.
SSFS chief executive Damien Graham said the Acadian mandate is aligned with SSFS’ strategic goal of selecting investment products that deliver returns that are specific to its clients’ needs.
“As part of our ongoing commitment to ensure our portfolios are robust, we believe that a managed volatility approach to emerging markets reduces risk without sacrificing the benefits and long-term gains we expect from this asset class,” said Mr Graham.
Acadian chief executive Andrew Hair said Acadian is working in a consultative partnership with SSFS and is pleased to have the opportunity to develop another portfolio around their goals.
“We are seeing increasing interest in these types of strategies from institutional investors as they seek to maximise return in the context of total risk,” said Mr Hair.
