UK - The £1.3bn (€1.9bn) Superannuation Arrangements of the University of London ("Saul") has awarded a £60m alternatives mandate to Morgan Stanley Investment Management (MSIM).
For the mandate, MSIM has developed a new Diversified Portfolio Allocation - Alternatives ("DPAA") strategy. The vehicle offers clients access to a range of alternative assets to achieve a meaningful diversification.
The asset classes offered under DPAA include commodities, currencies, private equity, hedge funds, senior loans, real estate, emerging market debt, global macro, volatility, emissions, freight and infrastructure. Investment is both through a mix of MSIM funds and direct investments; and physical and derivatives contracts.
"When we initially decided to allocate part of our portfolio to absolute returns, we were immediately faced by the practical issues of implementation," said Penny Green, chief
executive of Saul.
"We discussed the issue with a number of providers, and were impressed by MSIM's approach to finding a solution. The MSIM team has worked closely with us for some months to understand our requirements and have delivered an innovative solution which meets our needs," Green added.