AustSafe Super adopts AB overlay strategy

8 December 2015
| By Nicholas |
image
image
expand image

Adopting AllianceBernstein's (AB's) equity risk-management overlay strategy will boost risk-adjusted returns for AustSafe Super members, the fund's chief executive, Craig Stevens believes.

The industry fund announced the decision to use the AB Factor Risk Completion strategy, to improve risk-adjusted returns without reducing the potential to generate alpha.

"By allocating a proportion of our international equities exposure to this overlay strategy, we believe we can improve the management of our equity portfolio without diluting conviction in the underlying investment managers or reducing the return sources we wish to target," Stevens said.

AB chief executive, Australia, Jen Driscoll, said the service applies a disciplined quantitative process combining AB's proprietary risk and alpha models, aiming to reduce the impact of unintended common exposures and asset crowding, and to improve the balance of pay-offs across time-horizons by diversifying risk in a capital-efficient way.

 

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 3 months ago
Kevin Gorman

Super director remuneration ...

1 year 3 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 3 months ago

Shadow treasurer Angus Taylor has vowed to slash red tape and introduce a suite of financial services reforms aimed at transforming Australia into a leading financial hub...

14 hours ago

Deglobalisation is emerging as a major driver of infrastructure debt opportunities as regions onshore vital industries, a superannuation fund-owned manager has said....

14 hours ago

Australian superannuation funds are grappling with heightened global instability, as US policy shifts create a volatile backdrop for investment strategies....

14 hours ago

TOP PERFORMING FUNDS