US - Consultant Wurts & Associates has hired Jeffrey Scott, the investment chief of the Alaska Permanent Fund Corporation known for spearheading a risk-based asset allocation, to serve as CIO of its outsourcing business.
Wurts also lured Max Giolitti, the $40bn sovereign wealth fund's director of asset allocation and risk.
Scott is known for implementing a risk-based approach to asset allocation by dividing assets according to the amount of risk they introduce to the portfolio. His work paved the way for the likes of the California Public Employees' Retirement System and the California State Teachers' Retirement System to take similar risk-based approaches with their portfolios. (Global Pensions, 11 February 2011; Global Pensions; 7 April 2011)
"We are thrilled to have Jeff and Max join Wurts & Associates. Jeff's background in risk management, alternative investments, and his personal leadership qualities are truly exceptional," said Wurts chief executive Jeff MacLean.
"Conventional wisdom needs to be challenged in how we allocate assets and manage risk in portfolios. Jeff's well established background and thought leadership will help Wurts & Associates redefine how institutional investors should allocate their assets relative to liabilities and objectives."
Officials at Wurts plan to push a risk-based asset allocation approach to discretionary investment clients over traditional mean-variance optimization. The discretionary investing market is expected to swell to $500bn by 2015. Wurts currently advises on $34bn of assets through discretionary and non-discretionary portfolios.
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