Copying and distributing are prohibited without permission of the publisher
First Quadrant wins SAUL mandate
05 March 2013
The Superannuation Arrangements of the University of London has allocated its £80m DB pension scheme to First Quadrant’s Global Risk Balanced Fund
University of London
First Quadrant has won a mandate from the Superannuation Arrangements of the University of London (SAUL) defined benefit (DB) pension scheme.
The £80m mandate will be allocated to First Quadrant’s Global Risk-Balanced Fund which aims to improve risk-adjusted return by diversifying risk more equally across global developed and emerging equity markets, global sovereign bonds, TIPS, commodities and real estate.
The firm said it is deepening its exposure to UK DB and defined contribution (DC) schemes.
Investment consultancy firm Redington assisted SAUL in its search for a risk parity manager.
Penny Green, chief executive at SAUL, said: “In today’s low yield environment, managing liabilities while still reducing volatility has become a primary objective for SAUL. We are confident that the First Quadrant Global Risk-Balanced Fund will provide SAUL with a balanced, stable and risk assessed return, and is an ideal solution to help our scheme meet its goals on behalf of members.”
Karen Heaven, vice president in investment consulting at Redington, said: “We believe that risk parity strategies offer attractive risk-adjusted returns, and this new appointment is consistent with the Pension Risk Management Framework that SAUL has in place to ensure that investment strategy is in line with the scheme's overall objectives.”