Macquarie has added a manager to the Macquarie Professional Series’ range of funds – the first new addition in more than five years.
The addition of Analytic Investors and launch of the Analytic Global Managed Volatility Fund aims to offer institutional and retail investors in Australia a low-volatility-investment option.
The fund aims for exposure to a diversified portfolio of international equities offering lower volatility than the MSCI World Index ex-Australia unhedged, with net dividends reinvested.
Analytic’s philosophy is that a portfolio comprised of low-volatility equities can outperform the broader market over the long term.
The undeniable attraction of equities
Adrian Stewart, head of the Macquarie Professional Series, said that Analytic is a timely addition to the range as ongoing market turbulence has increased risk awareness among investors, encouraging them to look for lower volatility options.
“Challenging market conditions have continued to test investors during recent years and, as a result, we have seen them take a flight to safety by increasing their cash holdings and opting for more passive investments,” he said.
“However, investors understand the benefit of maintaining exposure to equities and are looking for solutions that offer the opportunity to generate attractive returns, while reducing the negative impact of market volatility.”
Better smart beta
Stewart believes Analytic’s arrival as part of the Macquarie line-up comes at a good time for the superannuation funds industry, which is looking to invest in stable and solid funds that offer a smarter way to gain equity exposure.
“The introduction of MySuper legislation has prompted many institutions to rethink their asset allocation and seek smarter ways to achieve equity exposure in their default funds under this new regime,” he said.
“The inclusion of a ‘smart beta’ strategy, like Analytic’s Global Low Volatility Equity strategy, can help investors achieve benchmark-like returns at lower levels of volatility, freeing up the risk budget to be deployed in high alpha or alternative exposures.”
Analytic has been at the forefront of low-volatility-equity investing since the inception of its Global Low Volatility Equity Composite in 2006. Harin de Silva, president of Analytic, said he was looking forward to be bringing one of its signature investment strategies to Australian investors.
“This is the first time we have offered a fund in the Australian market and we are delighted to be partnering with the Macquarie Professional Series,” he said.