UK - Fujitsu Services Pension Fund (UK) has hired Barclays Global Investors (BGI) to run an active global tactical asset allocation (GTAA) mandate for its £1.3 billion pension fund.
The mandate will take tactical positions in global equity, fixed income and currency markets by investing a portion of its portfolio into BGI’s pooled flagship Ascent asset allocation fund. This fund has achieved an annualised outperformance of 27% above its benchmark since its inception in March 2001.
David Sillitoe, chairman of Fujitsu’s investment committee said: “We wanted a risk-controlled way of consistently adding alpha to the pension fund. In periods of low equity returns, pension schemes must maximise their portfolio’s potential to generate alpha. BGI’s approach to managing global asset allocation mandates fitted the bill.”
The BGI fund seeks to provide high absolute returns by taking long and short positions in 30 different equity, bond and currency markets worldwide.
Paul Farrell, director, strategic account management said: “BGI is very happy to be working with Fujitsu Services on this mandate. We believe that a global market selection strategy, run with a wide breadth of carefully selected markets and with a minimum of constraints, can consistently add alpha to an investor’s portfolio. An added advantage of this type of investment strategy is that it has a low expected correlation to equity and bonds.”
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