The SSgA Global Managed Volatility Alpha strategy will be added into the IOOF MultiMix suite of multi-manager superannuation funds.

IOOF portfolio manager for strategy and international equities Stanley Yeo said a "key factor" in the decision to appoint SSgA was the fact that its holdings are not dictated by weightings in a traditional market capitalisation index.

"This approach helps to avoid concentration risks that are prevalent in such indices, and reduces security overlap in IOOF’s multi-manager portfolio to generate greater value for its active fee budget," said Mr Yeo.

"We like the way this strategy is designed to help minimise absolute drawdowns and dampen volatility for investors. Our goal is to deliver superior risk adjusted returns at a total portfolio level across all of our products. We believe this equity strategy will help us do that," he said.

SSgA manager of relationship management in Asia-Pacific, Peter Mitchell, said SSgA has worked with IOOF MultiMix for "many years across a number of asset classes".

"We believe this strategy, with its benchmark agnostic construction, high active share, and its optimisation from an Australian dollar currency perspective, is a great fit for IOOF’s multi-manager portfolio," said Mr Mitchell.

IOOF chief investment officer Steve Merlicek said: "Partnerships like this with investment managers reflect our dedication to provide our clients with innovative solutions and mirror the innovative way IOOF is keen to manage its exposure to global equities going forward."