UK - State Street Global Advisors (SSgA) has won a £165m global equity 130/30 mandate from the Asda Group Pension Fund, for Global Alpha Edge.
Asda pensions manager Steve Jones said: “The appeal of the product was the opportunity for enhanced alpha relative to long-only mandates through short positions whilst having a cap on total liability.”
Global Alpha Edge is one of SSgA’s first products to incorporate a 130/30 investment methodology that is also UCITS III-compliant. It limits market exposure to 100%, the level of shorting improves the portfolio’s efficiency by providing a better risk-return ratio. The strategy aims to achieve consistent outperformance of 4% to 5% over a three-year market cycle. SSgA’s said the strategy maintains a 4% to 5% tracking error against its benchmark, the MSCI World Index.
SSgA senior managing director, UK Kanesh Lakhani said: “UK pension funds continue to move toward global equity strategies and are currently focusing on increasing the alpha from their equity portfolios efficiently within a risk budgeting framework.”
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