UK - State Street Global Advisor's (SSgA) European equity long-short market neutral strategy has celebrated its first anniversary with a solid 12 month return achieving out-performance of the cash benchmark in line with expectations.
The strategy achieved a return of 9.9% to June 30, 2001. The three-month Euribor benchmark return in the same period was 4.9%.
SSgA said its results can be attributed to its model-based market neutral process producing well diversified portfolios enabling the fund to outperform during high volatility, sharply falling European equity markets and deteriorating global sentiment.
Michael Schoeck, head of active quantitative equities at SSgA, said: “Hedged strategies are an increasingly popular and appealing option for investors who believe that the return potential of traditional asset classes may be more limited in the years ahead and who therefore seek exposure to alternative investment vehicles.”
By Janet Du Chenne
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.